losing position

Lesson #6 - Don't play when you are tired - it's my lesson of the day

Don't play when you are tired

You remember yesterday. I took 2 positions of 0.10 each.

First to be honest with you, I made a "double click" and i did not really want to open 2 positions....in Metratrader 4, when you click on the trade, you are not opening the box to modify the order, what i wanted to do to modify StopLoss, but open a box to open a new trade. 

I made a terrible mistake with the stop loss.

Lesson #3 - before to setup your trading plan, learn this magic formula about money management

The Hope of Gain Formula + The Risk computation is the basis of the money management

I will repeat that each time I can but the base of your future success will be money management more than your ability to recognize a pattern, enter right or exit right.

And a formula can help you a lot. This formula is quite simple. You will compute a "hope of gain".

If you make 10 trades, win 6 and lose 4, you have a winning percentage of 60%, losing one of 40%, right?

Ok,

If the average win for the winning trade is 20 USD and the average loss for the losing one is 30 USD, you have :