Example of a successful long trade with target and stop set. Entry-point is the yellow oval. Finally, know your breakeven point; the price at which you can exit a trade without incurring any loss due to trading fees.
If you enter a trade only for the market to meander sideways, consider exiting at breakeven rather than wasting time and energy on monitoring a flat market.
Exercising discipline in regards stop-losses and targets is the best way to manage greed and fear. Placing stop loss and profit target orders immediately after entering each trade is a good habit to acquire. Adhering to this methodology, one good trade compensates for two bad ones. Therefore, selecting only trades which will potentially satisfy a 1: Of course, markets are seldom predictable. Continue reading