Good news: We’ve extended your free “Insider’s Look” at Black Swan Forex (BSFX) through Friday.
That means you’ll get two more days of trade alerts, updates and analysis. It also means you’ll get to see how Wednesday’s activity plays out.
To that point, here is a summary of open positions:
You added a new EUR/USD position, which is working higher this morning.
You were stopped out of a GBP/USD trade with a 50-pip loss yesterday.
Fortunately, though, that loss is more than covered with the profit I recommended locking in by adjusting stop-loss levels on open AUD/USD and USD/CAD trades on Wednesday. And in fact, during a volatile session for the Aussie overnight, we were stopped out with a 50-pip profit.
And that brings me to the subject of today’s missive:
Optimize Success by Adjusting Trades on the Fly
I always recommend you use a simple stop-loss to manage risk in every trade. I cannot stress it enough – it is easily the difference between success and failure, at least for me.
Moreover, it is vitally important to determine your stop-loss before you enter a trade. Two reasons:
You are most objective about the trade before you have actually made the trade. Your objectivity tends to disappear after you enter a trade. Your mind tends to block, or rationalize away, negative information that may suggest it’s time to exit the position.
Your risk tolerance should determine whether you place a trade in the first place. Look for a new trade I if your expected risk does not make sense relative to your expected reward.