Another long opportunity with NZDCAD
see chart.
Comment:
wrong. RRR should be 1:2
Comment:
Now, we see hope and disappointment in this trade now. First, it went up to nearly 0.875 and then it tumbled down to 0.8656. And now, it has rebounded again.
What some traders would do is they started to imagine the worst case scenario and take the future steps by cutting loss , thinking they can save some money. Maybe, they are right as the trade may hit the stop loss. If it does, you are already aware of the 45 pips loss when you first initiated the trade.
That means, you are prepared to risk 45 pips to gain a higher profits of 109 pips. As such, such manual adjustment is not necessary as it tampers with your psychology of trading.
What some traders would do is they started to imagine the worst case scenario and take the future steps by cutting loss , thinking they can save some money. Maybe, they are right as the trade may hit the stop loss. If it does, you are already aware of the 45 pips loss when you first initiated the trade.
That means, you are prepared to risk 45 pips to gain a higher profits of 109 pips. As such, such manual adjustment is not necessary as it tampers with your psychology of trading.
Comment:
Now, through this small loss, you can appreciate the importance of having a stop loss in place else the losses will be doubled.