We got stopped out of the EURNOK trade at 7.4924. Our entry was 7.4788 with an initial stop of 7.5348. The loss was 136 pips. Remember for the EURNOK, 1 pip is equal to $0.20. Therefore, the loss was around $28 for one mini-contract.
In trading, your winners really don’t count. It is the losers that make the difference. Does your system minimize your losses when you are wrong and maximize profits when you are right.
For this trade, we were wrong. The system minimized our loss which is exactly what we want it to do.
There is no system that is 100% correct. In fact, winning vs losing ratio does not really matters. What matters is the reward/risk ratio.
A technical system without money management will fail.
EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose