FourXXXX wrote: Fri May 21, 2021 6:19 pm
not to chase too many pips and end up having the trade come back and result in little or no gain.
I may be wrong - yet again - but you shouldn't "chase" at all (and if you follow your plan and price comes back, so be it, you are stopped out and that's also part of your system: see below).
1. You develop a strategy (decisive entry point, decisive exit point, fixed risk-reward-ratio)
2. You backtest it until you know exactly:
a) win rate
b) profitability
c) maximum drawdown
(it never was true that you need a high win-rate for a profitable system)
After about 400 trades of backtesting and forward-testing (demo):
You know (more or less) how many trades you will win, how many trades you will lose, how high the loss will be in monetary terms, what is your likely maximum drawdown (and whether you can live with it) and how much overall profit you are likely to make.
Then - and only then - do you start trading real money.
Under these conditions there should be no greed, no chasing, no fear - instead there should be concentration and execution.
But who am I to know?