Can you please suggest how should stoploss be placed? You have given ADR scale for TP. Similarly, where should I place stoploss for trading of major Indices like Dax, HS, and WS.
XARD: I am the wrong person to ask about stops, I do not use stops in my trading. When I take a trade I sit on it and manage it the whole way. If the trade is not going my way I pull the plug and sit on the sidelines waiting... There is so much talk about brokers using stop hunting algos and the big banks and institutions faking moves in the opposite direction so they can get in on the main move action with multi billion dollar trades. Over time we tend to see these fake moves followed by massive moves in the direction of the main trend. That is why I create my setups to follow these main trends so that we get in on the action. In the past I too did use stops in my trading only to sit back and wait for my stop to be caught. I do not do that now. When I enter the trade it means that the market is moving in the direction of my trade and if it is not then I am out. Also, if a trade that I am in is slow or static for a while I am out. Sometimes, it pays to simply stay out and wait. If there are mixed signals on the chart I will not take the trade, instead I just sit there. When everything lines up and the market is moving in the direction of the main trend then I will not hesitate to pull the trigger. With stops I think we become lazy and too reliant on the stop when on hindsight we know that we should have been out of that losing trade ages ago. When we book a profit it no longer becomes house money, it's our money and to hell with giving it back.