Tuesday, June 10, 2008

To stop or NOT to stop, that is the question

another nice pop last night I made 400$ trading both the euro/usd and the usd/cad.

I think I am developing a system and starting to see what is working and what is NOT.

I set entries for both the usd/cad and euro/usd then let it ride.

I have found that ... inspecting the chart using a 15 minute interval, looking for obvious points of strong support of resistance. I then set an entry point where if that point is hit, a position is opened in the direct of the trend.

I have also been trading without stops, which I know is bad but honestly, I have been consistantly losing money where I pick the trend right but got stopped out in a short term correction.

This is a BIG one here. Obviously I dont want to trade without stops. That is just too risky. It seems I need to have some capital protection and trading without stops is just plain dumb... but ... I am making money.

Unfortunately, I have been consistently losing money when I trade with a stop and making money when I trade without a stop.

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