Since hammering away at trying to get a day trading system to work I have noticed that the let your profits run strategy may not be an option on the short term.
Trading over a day or even a week is a really tight zone.
Let Your Profits Run
Whilst I have been practising [with real funds] I have noticed that trying to let your profits run might be futile.
One trade that I let run on a currency pair made almost 90 points [I was using a £1 point stake] profit over a couple of hours but by the time I had traded out using signals I only took £38 profits.
In hindsight, if I had set a target profit I could have taken a profit sooner without further risk.
The problem with letting your profits run when day trading is that you run the risk of sharp retracements that can annihilate all those hard fought for points that you have made far quicker than you gained them.
So it got me thinking that maybe it is a better idea to set a stop loss at say 10 points and then set a profit target of 30 points?
The issue is again with the time frames… Trading short term is just savage when compared to that of the long.
Alternatively it might be a better idea to use fixed odds on binary. As you can spot a movement on the charts and then incorporate to binary. This may well be the road to take.
Overall though I have been enjoying the challenge of finding something that works over the short term time frame; even though it’s tough going.
I still believe it is doable though, but I want to create something that is easy enough to do blindfold, so that anyone that can work a pc can get involved with opportunity if interested.
That’s the real challenge, making a system that easy.
I have read every last piece I can on day trading, yet there a no systems that have been presented that clearly.
For now, think about whether as a trader you’d like to take profits sooner for less than may be possible… or just let the profits run? Or maybe fixed odds are better for everyone? I’ll keep at this though and keep you posted.
Another point to take serious note of at the moment is that the markets are extremely volatile. The brexit situation is affecting price movements and some trades seem a bit of a lottery. This could be clouding and masking any form of true/regular results.
Chill out and wait it out
You might be better off chilling out at home for a few weeks until some sort of normality returns and leave the trading altogether… take up yoga or treat yourself to some spa goodies to relive the stress. These body brushes might help the tension???