|
Well on your last point there's no right or wrong answer, just whatever works best for the individual. But for me I also try to recognise the fact that there are only so many trading hours in the day, and I want to be applying my system across 6-8 currency pairs (on the assumption that there will always be a chance of a good signal in one of them).
So factoring in time, if for example I could grab 60% of a move with a 1 hour position and 75% of a move with a 4 hour position, I'd personally be inclined to take the 60% and move on. Not only are you free to do something else, but in the (admittedly a bit extreme) example I've chosen, it's pretty obvious that there's been a change in momentum and if you're trading retail fx (as opposed to sitting in a bank with the extra info flow that entails), that sort of thing makes me more inclined to take the money and run. I'm looking for trades where, when they work, I fully understand WHY. And for me that usually equates to trading on breaks of key tech levels and trying to go with the large interbank stops and orders generated by hedge funds.
Well it sounds great in theory :-)
|