Sometimes the market will waste our emotions because when we are excitedly waiting for the market to explode, it gives us a cold door. A cold market is one where the price hardly changes. At this time, there was no significant price change as expected.
In reality, this situation happens from time to time, perhaps because the market was waiting for the most important data of the week, so the usually important data at this time was not so influential.
We also need to pay attention to the “market focus” when we trade data. Usually, within a week to a month, there are always one or two focuses on the foreign exchange market. You must know what the market is currently focusing on so that your trading can be targeted.
Another possibility is that this data is not very important, and you chose the wrong trading opportunity. Anyway, you should know that if there is no significant movement within 3 minutes after the data is released, then this is usually a cold market.
Add 10 pips on the highest price and subtract 10 pips on the lowest price, which is also to prevent the cold market from triggering orders. After 5 minutes, if there is no significant price, then you should cancel all data market orders. If one of your orders has been triggered, then you should watch its performance.
Set a 20-pips take profit and see what the market tells you. The result is either you lose 10 pips or you earn 20 pips. When your profit exceeds 10 pips, you’d better move your stop loss slightly.
Of course, you can also use “sit on the mountain and watch the tigers fight”. When you set a larger take profit point, or you don’t set a take profit point at all, you must strategically use a trailing stop loss to protect your profits while letting them run.
After completing a trade, you need to be ready to wait for the next trade. Remember, you won’t always make a profit smoothly, the oscillating market and the cold market are our profit obstacles, so if we want to win in the long term, we must let the profits run.
At first, because you have a hard time grasping the trailing stop loss setting, we suggest that you use a smaller take profit setting, but as your trading confidence and experience accumulate, you must try to develop towards the trailing stop loss.
Cutting losses is not enough, you have to let the profits run. Trailing stop loss is the highest form of take profit. We always try to avoid using the idea of take profit, because take profit violates the principle of letting profits run in trend trading.
But in range and intraday trading, we have changed this rule. The measures we often take are also the measures we suggest you take, which is to give the market a little more room to filter out more market noise movements.
Usually, we will add or subtract 15 pips, instead of the 10 pips mentioned above, or we will look for the highest and lowest prices in the past 8 minutes to add or subtract instead of the highest and lowest prices in the past one or two minutes.
Increasing the market activity space reduces the probability of entry orders being traded in the oscillating market. Of course, this also reduces your potential profit, but you should first consider avoiding mistakes.
Losing a little on potential profit is worth it, after all, the benefits of reducing erroneous trades are far greater than the price paid for it.