If you enter on the hourly chart, exit on the hourly chart.

Too many times I hear about new traders opening a trade using the 5-minute chart (not my favorite approach) and when the market moves against them, they move to the 15-minute chart to justify staying in a little longer, funded forex
hoping that the market will turn around. Then if the market continues to move against them, they move out to the hourly chart to look for a reason to stay in the trade. As the market continues to move against them, they shift to the daily chart to hope to find a reason to stay in the trade.
The next step is to get a margin call because they have no funds left to maintain their position. Of course, the main issue here is that they were looking for a way to stay in a losing trade rather than closing it out at a small loss. Taking a loss does not mean that you do not know what you are doing. Too many new traders think that losing a trade means that they are losers or that they aren’t smart enough to trade. Nothing could be further from the truth though. Professional traders understand that if they trade, they will have losing trades.
That is really the only guarantee in the field of speculation. How you handle those losing trades has as much to do with your success as a trader as any other factor. You don’t have to like losing, but you must accept the fact that all trades cannot be winning trades. You have to keep those losing trades small enough to be able to make up for them with your winning trades. Switching time frames to justify staying in a trade is not how you keep your losses small. Identify your exit point before you get into the trade and stick to it. Judge yourself from month to month rather than on every pip move in the market. Be consistent in your approach and stay in one time frame from the beginning of the trade to the end of the trade.
Great New Forex Site From Thomson
LEGENDAFX and Thomson Financial have a great working relationship.
Thomson’s IFR funded forex Watch product is one of the most respected foreign exchange market commentary services in the world. (and available free to LEGENDAFX’s retail trading clients).
Recently, Thomson created a free Forex website designed for both retail and institutional traders I like the site and have asked Thomson to provide a brief description of the site:
Thomson FX Hub is a foreign exchange-oriented site which takes advantage of Web 2.0 technologies to connect our analysts and readers in real time. FX Hub filters news, commentary and analysis on the web and puts
our authoritative spin on it. We surround our commentary with tools and information critical to traders and investors, enhancing its value.
If you are looking for tedious PhD-produced palaver, FX Hub is the wrong place for you. If you are looking for sharp, opinionated, to-the-point content with enough fundamental backbone to illustrate a concept without making your eyes glaze-over, FX Hub is your kind of site. We pledge to remain regression analysis-free.
Entry Points
A few days ago I entered a pretty bad trade. This trade turned out bad because of my entry point. I had a long position in the EuroUsd from 1.4812 that got closed for some reason (neither my stop nor my limit were hit and I didn’t close the trade manually). So, in the morning when I checked the status of my trade and saw that the Euro was now up at 1.4920 and assumed that it would trade back up to eventually reach the long-awaited 1.50 level. So I bought 3 lots at 1.4928 (looking back at this trade, I can affirm that it was almost an “impulse” purchase). I put my limit price at 1.50 (210 pips upside potential) and my stop price at 1.47 (yes, i know, more than 600 pips downside potential) and completly ignored the 1:2 risk:reward ratio. Of course, since then the Euro has lost about 200 pips, and I am currently down over 500 pips). Looking back I realize how random, my entry point was and understand the importance of patience and discipline to choose a precise entry point. I was afraid of being left out from what could have possibly been the Euro’s final ascension towards 1.50 and immediately jumped in witout considering many other factors.

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