One of the critical components of a forex trading plan is how to properly
set a stop loss in case a trade does not go in your desired direction.
Simply put, you need to have a forex stop loss strategy in place. This will
greatly help in objectifying your trading plan, and reduce or eliminate the
psychological issues of taking on forex risk. That’s because you can be
comfortable knowing, in advance, what your risk is.
Once our forex entry point is hit, with our pre-determined risk
established, we are then tasked with trade management as we head toward our
profit targets. This gives us a nice, step-by-step process.
The attractive thing about our trading approach is that we know our exact
forex entry and our exact forex stop loss before we even get into a trade.
Once we have identified our support and resistance levels, and we have one
of our forex patterns present, we’re all set. This goes for any trading
style: forex scalping, swing trading, or position trading.
You can view this week’s video right here: