This is the trade review for the week of March 5-9, 2007
It is sound good but again the stop loss is so far of the entrance and if you loss you will have hard time to replace the loss, in my system the stop loss should be at less half of the profit, any way it is your system and you know it more than me. Good look for next week.
When planning your reward/risk its true that you want to have at least a 1:1 ratio. However, your reward doesn’t ALWAYS have to be greater than your risk. If you can win 60-70% of the time then it is ok to have a reward/risk ratio of less than 1:1. I like to place my stops at places where I think my trade will be protected, rather than just choosing a stop loss number for the sake of choosing one. So sometimes my reward/risk ratio might be better than 1:1 and sometimes it won’t. I’m a firm believer of picking “smart” stops rather than just choosing a hard number in order to meet a favorable reward/risk ratio. The market doesn’t care whether or not you risk 10 or 100 pips. The main thing to remember is to place them behind places where your trade will be protected such as support and resistance levels. Hope that helps.
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Last week, I was watching EUR/AUD to see its next move after testing the top of a falling channel, and with this weekend's upside break, it might be time for me to make my move!