O'Reilly logo

Selective Forex Trading: by Don Snellgrove

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Appendix B. A Mechanical and Nonemotional Style of Trading for Part-Time Traders

One of the greatest challenges for any trader is learning how to trade without experiencing the emotional stress of failed trades. Even when traders enter what seems to be a legitimate trade, it will occasionally go bad almost immediately. The most common reaction of an emotional trader is to just stare at the screen hoping that the trade will become positive. The correct procedure is to exit the trade based on a personal stop tolerance and then implement a plan to either reenter the trade as a cost-average entry or flip the position in order to take back the lost profits.

But what about part-time traders who need both to manage their emotions and to have a strategy that allows them to trade on a very compressed time frame? I have created a mechanical procedure for very busy people. To follow is a written explanation of this strategy. I have also included a second simple trade that I hope will increase your odds of success.

THE STRATEGY

Entries and Limits

When I am not available to monitor trades, I trade only $JPY and EURJPY combinations because I find the rate of success to be higher than for other combos using this strategy. I enter at least two separate entries each time a trade signal sounds. Trade one is for 20 pips of profit per lot, as is trade two; however, if I am close to a computer and the market is approaching the limit, then I remove the limit order for the second entry and let it ride. One ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required