Tomorrow, you could begin doubling your account every single month starting with one letter.
The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2017, following my trades you would be doubling even tripling your account some months. Let me show you how.”
He will show you exactly what to do... and he’ll give you the blueprint for just $1.
The beauty of Forex is, as a 24-hour market, you can pretty much name your price and get it. That is to say, if you set a Stop-Loss at 1.2532 for EUR/USD, and it hits 1.2532, you’re generally out at that price. Except sometimes on weekends, there are no over-night gaps to rush past your stop while the market is closed. The security of knowing the market is unlikely to blow past any stops, as I’ve seen it do in the futures market, is one of the many reasons I made Forex my home.
But, where should we set those all-important stops? That’s the big question.
Protective Stops – How much is enough, how much is too much.
A common mistake made by beginning traders is to set their stop-loss too close, thinking it will reduce their risk. When the fact is, they actually increase their probability of losing in the process. Stops should be placed where, if hit the analysis was wrong. Stops placed too close can be hit prematurely, just before the market turns in your favor. At the same time, you want to make sure that the amount at risk is not so large as to blow out your account if you hit a series of losing trades.
And finally, you do NOT want to use the same stop price everyone else is using… and end up getting exploited by market manipulating “stop hunters”. So, it’s a good idea to stay away from round numbers like: 1.4100, 115.50, and .8800.
The Average Trading Range (ATR) high-to-low is a reasonable basis for your stop-loss. But, to avoid “stop hunters”, I like to use a 40-period ATR instead of the 14-period that everybody else uses.
The easiest way to set stops that give you sufficient wiggle room, and still provide a good safety net, is to establish the minimum number of pips you’ll risk per trade. I use 100 pips. Then, set your stop-loss at the 40-Day ATR, or your established minimum, whichever is greater.
What you do after you’re in the trade often determines your success. Once you’ve established your stop-loss, setting a take-profit can be as simple as multiplying the number of pips at risk.
I set my target at 2 times the amount of risk. And I admit, sometimes I could have gotten twice that amount. But, there are also times when price comes within a pip of my target and then reverses. So, it’s a delicate balance you’ll have to decide for yourself.
But, don’t worry too much about it… because with my FX Trifecta trade management rules, more trades end up being timed out than stopped out. Let me explain. The longer the market chops along in a sideways direction, the more precarious the trade becomes. FX Trifecta gives a trade 4 trading days to develop (weekends don’t count). If the trade is not profitable at the end of the 4th day, we move our take-profit to break even. However, if a trade is profitable, but has not hit its take-profit number by the close of the 7th trading day, we close the trade at the beginning of the 8th day… or, if the 7th day is Friday, before the market closes to avoid holding a profitable trade through the weekend, (if not profitable, stay in).
Please feel free to tweak your own trading plan with regard to minimum stop-loss, multiple for where you’ll take-profits, and the number of days before you’ll move your take-profit to breakeven or close a winning trade. But, do not tweak on the fly! If you decide to make adjustments to your trade plan, do so BEFORE you place your trade.
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
1) The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the “Services”) is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing (“TradeWins”) a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis.
2) TradeWins’ Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services.
3) Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services (“Subscriber”) should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber.
4) You should trade or invest only “risk capital” – money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
5) All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities.
6) Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.
7) No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses.
8) The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber’s own election and for the Subscriber’s own risk.