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3 Comments

  1. Andrew-Reply
    July 2, 2015 at 1:56 pm

    Hi Kym,

    In the video you mention that you personally risk up to a maximum of 20 pips on any given trade. Is that 20 pips per position or in total?

    For example: If a position were to be split into 4 entries/exits each position would have a 5 pip stop; totalling 20 pips.

    Or

    The same trade with a 20 pip stop on each position would total a 80 pip stop (assuming all the stops were the same level).

    • Kym Watson-Reply
      July 3, 2015 at 6:11 am

      Hi Andrew,

      I am referring to my intra-day trading here in which I normally only have the one entry with multiple exits. I do not use a fixed 20 pip stop, quite often it may be less and rarely more, but these are calculated after reviewing the technicals . There are occasions where I might have an add-in but again the stops are used subject to the market volatility and technical levels.

      If I have a preferred add-in level there are quite a few variables that I will take into account. Firstly if I am taking an early trade, it is often a smaller position and placed to ensure that if the market does not come back to my ideal level I still have exposure to the trade. The stop may have to be bigger. On the add-in which will normally be bigger the stop may be smaller, as if price breaks against me at my predetermined level, my analysis was probably wrong so I may as well be out of the position. Plus I will be looking at the overall risk of the position to ensure it does not exceed the risk reward ratios.

      This is quite a subject which I could cover next week on the update.

      Best wishes

      Kym

      It does get more complex by taking variable targets

      • Andrew-Reply
        July 8, 2015 at 6:40 am

        Thanks Kym,

        Personally stop placement is something I need to improve i.e. when to tighten up and when to give it a little more space. A video on the subject would be extremely usefully.

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