EURUSD Daily Time Frame - Short Trade Stopped Out!

OANDA:EURUSD   Euro / U.S. Dollar
Yesterday I showed a valid short trade setup with a Stop Loss and a Profit target. Today EURUSD moved above my stop loss price during the day stopping out this trade setup with a small loss. This is an example illustrating that not all valid trade setups will work. Nothing is guaranteed in trading there are only probabilities that trade setups will work. As long as over the long term we add to our account we cannot fault the trading plan. My strategy is to cut losses short and let the profitable trades run until they run out of momentum. This is good money management.
Comment: Always, always, always use a Stop Loss and don't risk more than 2% of your account balance on any one trade. Always, always, always set a price target that is at least 2 times the dollar amount of your stop loss. Also make sure there is no support or resistance levels between your entry and your profit target. Once you have setup yous stop loss and price target WALK AWAY and let the trade work. Never, never, never change your Stop Loss or your price target once it is set. There is one exception, once your trade is well in the money you can move your stop loss to break even. Keeping to this plan will remove human emotions which is the number one enemy to traders.


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