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Exclusively
For
Subscribers
Only !
" How To Place Stop-Loss STRATEGICALLY For
Your Forex Trades - So They DON"T
Get Hit ...Again & Again....! "
( It's Time To End The Frustration & Fear
....Once & For All ! )
Written By :
Aaron Tan ( full time
fx trader )
Location : Pool Side Table
Dear
Valuable Friend/s,
Deciding on a Correct Stop-Loss for your trades can be a
very
tough task for most....
Especially the newbies and those whom are struggling
with their trades.
Setting too tight a Stop-Loss....your trades always get Stop-out unnecessary
....( although you're right about the trend in the first
place )
On the other hand.....setting too BIG a Stop-Loss, you could not
achieve a good risk/reward ratio...
....Which result in deficit & yet another losing month for your
trading account .
( capital getting lesser & lesser ....month after
month )
Sometimes you even thought of just " Heck-Care " about the
Stop-Loss and just trade WITHOUT one...
But on the other hand, you're feeling very fearful and
could not trade with a peaceful mind...
What can be done about this
problem in your forex trading then ?
Any solution in the
first place ?
Of course there is !
And later, I am going to share " my way " of placing a Stop-Loss
Strategically for my trades....
- Which has been proven very effective in Preventing Stop-Loss getting hit
unnecessary.
In the event that it does get hit, it means I am lucky
and protected by the Stop-Loss.
Hence, saving the WRONG trade from draining my account
and wiping my capital with the DEFICIT.
Many fellow readers have wrote in to me asking ...
.....or rather seeking solution to this issue on Stop
Loss setting .
So I actually spent about 3 hours by the pool side typing this article
to share with my readers.
( while watching my baby and wife playing in the baby
pool ...* smile * )
Later I will be sharing my proven technique on How to place a Stop-Loss
strategically for forex trading.
It is not a 100% winning kind of technique of course..
Nothing is guarantee
in trading game ....and you and me already know that.
However, by understanding and then executing this proven technique on
placing Stop-Loss.
I am confident that anyone can avoid seeing their
Stop-Loss getting hit UNNECESSARY ......
again and again....
Why is
this technique so effective then....Aaron ?
The reason is very simple here.
Because it capitalised on the " natural market
behaviour " .
When I am still learning as a newbie, I also face such problem of
getting Stop-Loss hit ....again and again..." UNNECCESSARILY " as well
...
And it is by " finally " understanding this technique on
how to place stop-loss stratetigically...
I then able to see tremendous improvement for ALL my
trades.......and my account started to grow exponentially after.
Getting 35-50 pips Stop Loss hit once or twice is not a big issue ...as
long as good money management
is being used.
HOWEVER....
What if we are talking about 8 or even 10 trades getting
hit again....and again...
That's already over
a FEW HUNDRED Pips down the drain ....right !
And only to see the trend goes your way...
In your heart, you would never fail to think about this :
"....IF ONLY I SET MY STOP LOSS 10 PIPS MORE ! "...
You would not get HIT then because the trade rebound and
go at least 120 pips the direction
YOU WANT.
The above is a very common scenario ( problem ) most
failing struggling traders face in their
trading indeed...
I knew it....because I have been there once too....* not
afraid to confess ! *
But that's in the past then.
Now with this technique, I am getting very good results.
Because I know the with the " Unique way " I set my
Stop-Loss, it is PROTECTING my money !
Alright....let me share this exact techique on :
How To Set Stop-Loss
STRATEGICALLY.... With You next
Read the entire post for details.
There are many different scenarios that can happen in
the forex market - That's an
undeniable fact.
So I can't possibly show examples for ALL - That's also
understandable right .
But , I will show 3 most common ones.
These 3 scenarios are good for both a Sideway as well as
a Trending market.
Hence, I am sure you guys would have no problem
executing it for your trades too.
Alright..let's go !
-------------------------------------------------------------------------------------------------------------
The
Main
OBJECTIVE
Of A Stop-Loss In Your Forex Trades
------------------------------------------------------------------------------------------------------------
Just as the name implies...
It is a Stop- Loss !
.... That means if a price can
BREACH a certain price level, you would want to EXIT at that point.
If you go LONG/BUY previously..
Then the Stop Loss would "
SELL " for you at a certain price point you pre-set...
Nothing more complicated than
that.
So to truly fulfill the main
purpose of a Stop- Loss....
..... and reap the maximum benefits from it..
=> You Should Only Place A
Stop-Loss At A Point That The Price Should Not Breach ! "
And if it gets breached, you would want to get out because there is a
high tendency that you're
WRONG about the direction.
Simple and very very logical
right ?
Alright....next , let me show you 3 different scenarios on what I mean
by......
" Setting Stop Loss Correctly & Strategically ! "..
( .......And that is in a
Crtical ZONE that the price should NOT be reaching ! )
Let's get started :
My
"
UNIQUE
" Way Of Setting A Stop-Loss ...
( 3 common scenerios for You ...)
-----------------------------------------------------------------------------------------------------------
Scenario 1 : Place The Stop-
Loss After A Price Pull-Back/ Retracement
----------------------------------------------------------------------------------------------------------
When a trend starts to develop , it would Pullback / Retrace
at some point due to profit taking.
Even if it is just a short
term trend in the market, a Pullback/ Retracement would also occur.
( due to profit taking ....)
However, in order to secure high winning trades, I would normally go
for the very " FIRST "
Pullback / Retracement though.
As it is more reliable and
there are MORE Potential for the price to go further.
Here's an illustrations to show what I mean
:

- how to set stop loss correctly
Placing the Stop Loss slightly below
the Price Pullback is indeed a very good strategic location.
That's because a Price
Pullback is also essentially a " turning point " in the
forex market.
Even if it is NOT a
strong trend.....
...BUT at least we know that
the price is going to move quite a distance in " That " direction.
SO....You and Me can go in and grab some pips ( profits ) out of this
set-up !!
And because it is a Pullback
that we are taking advantage of here....
Hence the " Risk/ Stop-Loss value " we need to
use can be minimized too.
Best of
both world indeed.
Another technique that I like to use to further confirm that it is a more reliable Pullback is
to spot for congruence such as the 61.8% Fibonacci that coincide with
the pullback.
If you spot a pullback that
you would like to use as an entry point.....
....Do make sure that the pullback
at
least
coincides
with the 50% or 61.8% fibo level as well.
This would give you further
confirmation....
..... and of course make it a High Accuracy set-up to go in.
Just bear in mind that a Price Pulllback is simply a " turning point "
.....
....and most of the time it is
also a " Turning Point " for the trend to resume in the previous
direction.
So basically you are taking
advantage of the " low price " to get in & BUY again.
( The conventional way
of " Buy Low...Sell High " applies )
Which is why with this
technique, we can achieve a good risk/reward ratio..
Meaning we lose less.......and
we WIN MORE if apply consistently ! * smile *
So much for that....
Next, I am going to talk about a set-up that always presents in
highly Volatile market...
Crazy price swing a a result
and it also means a lot of PIPS to be grabbed by us too !
It is none other than the "
Symmetry Triangle BREAKOUT ".
Read on ...
------------------------------------------------------------------------------------------------------
Scenario 2 : Symmetry Triangle
Breakout
----------------------------------------------------------------------------------------------------
If you have been trading currency pairs such as the GBP/USD or GBP/JPY..
Then you would also agree that
they are very prone to such Symmetry Triangle Breakout too.
That's because the LONDON financial market is the BIGGEST around the
world....
.... and most of the time
during the first 2 hours of London Market Open...
The volatility is extremely
high !
And by spotted such Symmetry
Triangle Breakout set-up in the market..
It is a
strong hint that both the interests and volumes are very high too.
Meaning if the BREAKOUT is to the up-side, then the BUYING interests and volumes are very high.
So
we
can
go in and grab some nice PIPS from this volatility.
Another scenario which is very prone to such Symmetry Triangle Breakout
is during a major news announcement.
Especially those news which
carry more weight such as the NFP or
Interests Rate Announcement.
So How Do You Place The
Stop - Loss for such Symmetry Triangle Breakout ?
Let me show You the " hows " next :

- How To Set Stop Loss Correctly
Just like the old saying
of :
"...There
would always be extreme peaceful-ness BEFORE a catastrophic STORM ! "
( like in the movie Cresendo ...)
This Symmetry Triangle
BREAKOUT is somehow the same..
Of course with the latter, it is not a natural disaster though.
But if one is not using proper
risk control, he/she might LOSE A LOT OF MONEY ! Arghhh..
In the above illustration, the symmetry triangle breakout is happening
on the GBPUSD
A very volatile pair
especially during the first 2 hours of the London Open.
That BREAKOUT candle for this
example also happened on the market open as well at 7am GMT.
=> A Stop- Loss placed just below the level " BEFORE The Breakout "
is a good
strategic place indeed.
Because with such BREAKOUT, the interests & volume are very
extremely high.
So if the price can reverse
and breach the level before it breakouts, then it is better for you to
EXIT.
That's the principle governing
this set-up.
Now you know. * smile *
Alright, next I will be talking about the 3rd scenario which is also
the last one I am sharing here.
And it is the Evening Star
candlestick formation !
Why I choose to share this Evening Star CandleStick formation then ?
Well....in the 2 examples
above, I am talking about set-ups for an UPtrend....... if you notice.
So there must be a point
where the price would Turn Down & Reverse.
This is the nature of any
financial market ....no doubt.
And it also means that when
you can confidently spot " such hints " in the market too before it
turns down..
Don't you think you can get in early
and Short/ Sell to grab some nice Pip
( profits ) too ?
Certainly right !
That's why I choose to include
a candlestick formation for a uptrend
reversal - The Evening STAR
Candlestick Formation that is.
------------------------------------------------------------------------------------------------------
Scenario 3 : Evening Star
Candlestick Formation
-----------------------------------------------------------------------------------------------------

If you have been trading the forex market for sometime now..
Then the " reason " behind the
formation of such candlestick might not be new to you anymore.
But for the sake of other
newbies, I will just explain briefly here though.
Bear with
me for a while ya.
This Evening Star candlestick formation is actually an " Uptrend
Reversal " pattern.
It is mostly spotted after an
up-trend......
.... or rather AFTER the price
climbed for some distance.
If you refer to the picture above, you would notice a " DOJI " right at the top of the
move...
Which basically implies there
are indecisiveness in the market.
And soon after, if there's a "
Bearish Candle Closed " that follows...
Then it can be considered an
Evening Star formation.
When that happens, it is a good opportunity to go into the market for
some SELLING of course
The beauty of this formation
is that - It is very Reliable and one of the easiest pattern to spot
when
it happens in the market !
Here's How To Place The
Stop-Loss Having Spotted This Formation :

Very direct on this formation as you can see above too.
Upon spotted the Evening Star
Formation , just place the Stop Loss above that DOJI.
It is another very strategic location
where the price is NOT likely to breach at all.
Why so ?
.....Because previously at that level, the buyers are not showing any
BUYING interests anymore..
Instead, shortly after
that....the SELLERS came into the market and start Dominating.
In any trading game, as long as you are following the MAJORITY....
You
can ride on the wave and grab some pips ( profits ) and make your
account fatter too.
Important points You should note here is
that :
1) An evening star formation
spotted on a bigger time frames ( such as 4hour or daily ) would be
more reliable than
the smaller time frames ( such as 5 / 15 minutes )
2) As this is an " Up-trend
Reversal " candlestick formation, it means you would be trading the counter-trend too most of
the time.
So to
increase your odds of winning
with this Morning Star set-up, try to combined other congruence
such as a Double Tops/ Bottoms would definitely be good to
increase winning accuracy.
3) Also, if the BEARISH CANDLE
BREAKOUT is too HUGE -
Meaning the price has already
moved more than 120 pips perhaps, then
you
might
want to wait for the price to Retrace / Pullback
abit first before deciding
to commit.
This is
to prevent You from using too HUGE a Stop-Loss for that trade.
Achieving a Good Risk/Reward ratio is still paramount for all your trades no
matter which set-ups
you are going for.
Alright, with this, I shall conclude this article then.
Once again.....
Although this technique of " Setting Stop-Loss "
is NOT 100% Accurate..
But I can confidently tell you
that if You can follow the way
I place a Stop-Loss as explained above...
Your trading accuracy could also be increased
tremendously.....
Especially
when you DO NOT have to worry about
getting the Stop-Loss HIT UNNECESSARY....
.....again
and
again.
Frustrated to experience that ....I know.
I used to experience that too during my beginner's
days....
.....but once I understand the " True Objective " of placing
a Stop- Loss in our trades..
Things took a drastic change - For the BETTER of course
! * smile *
( my monthly trading profits improved a lot....so is my
trading confidence )
Most of the time, these set-ups would not be so " perfect looking " in
the live market....
.... and it could make it rather challenging for you
guys to identify the set-up / formation you thought it is..
When that happens ?
How...?
Well....just
step
aside
and skip that pair then.
They are more than 15 pairs in your
trading platform for you to grab profits from..
So why
bother taking RISK when it is affecting your judgement and trading
confidence ......right ?
Alright.....Thanks for reading this far.
I hope by now you have also understand the basis on :
..How To Truly Place A
Stop Loss " Strategically " For All Your Trades in the days to
come.....
And help you " END " those days of FEAR , FRUSTRATION & WORRIES
( due to seeing your stop loss hit...again and again ) .....once and
for all !
Till then..
I shall send more forex tips and strategies to share
soon.
In the meantime, happy practiscing this technique on "
Strategic Stop-Loss Setting " ya....* smile *
( Or.....continue reading below as I
have a important message to convey to you. )
To Your FOREX SUCCESS,
- Aaron Tan ( your trading
friend )
------------------------------------------------------------------------------------------------------------
"....This
Hector
Forex
Program Is Indeed A
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Should NOT Missed Out
On ! "

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Once again, I have to emphasize on this ...
( because I don't want anyone to
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)
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One of the best & most reliable forex course I have reviewed so far.
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Out of the 60, there are a also more than 5 LIVE training videos
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Stop-Loss setting too.
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This course is selling for $197.
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Here's one " rather long " testimonials to share :
( copy and paste direct from email )
------------------------------------------------------------------------------------------------------------
Dear
Aaron,
Thanks
for
recommending
this Hector program. At first, I find it rather
unbelievable based on
what you said. I am indeed feeling very skeptical by your review on
this Hector course because I always believe in joining a forex
course with a real mentor though. Not an online one.
But
since
you
said it comes with a refund policy, I choose to try it out
eventually.
I
have already joined a forex course that I paid more than $3k for and I
am not getting good
results from my trading at all. Seems like the 3k spent is a waste to
me after all.
But
having
gone
through the 60 Live training videos in the members' area, I
finally understand why
you always said price action strategies are more powerful now. My
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Just now for the
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breakout.
Not a alot of pips I know. But this kind of real wins make me rather
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send you my feedbacks today.
Also,
the
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And
you
know
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myself are learning
from the 60 live videos at the same time ! LOL
Luckily
my
husband
did not join the forex course like I did. Or else we would
be spending more than $6k then. And most probably would not get the
success I enjoy now with the more powerful price action strategies.
Thanks
for
sharing
your review on hector course Aaron. I truly appreciate it.
Melanie Ho ( Singapore- via email )
------------------------------------------------------------------------------------------------------------
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Sincerely,
-Aaron Tan ( your trading
friend )
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