Managing Risk to Target Consistent Profitability in the Forex Market

Expert: James Chen, Chief Technical Analyst at FX Solutions
Moderator: Maud Gilson

Summary:
Learn how the most important element of consistent profitability is a good risk and money management strategy. Find out the ways in which experienced traders manage risk in their forex trades with stop-losses, position sizing, and prudent exit strategies.

Webinar presented by FX Solutions  and FXstreet.com

Comments

[Keanu]

If you enter a market on a bullish breakout and put the stop just below the break out, 9 times out of 10 the market will come back and take the stop out before moving off? Surley you mean place the STOP below the last most significant support or resistance level prior to the break out level!

[Keanu]

In this video you say that you place targets on your charts but you never put profit targets on your charts?

[Keanu]

Your chart on entry and exits and stops looks good but charts are always easy in hindsight!

You also make no mention of the time/months that have passed since entering those positions on your chart. This is really very very long term stuff!!

[James Chen]

Hi Keanu,

Thanks for your questions and comments!

To address your first question, there are two places that one can choose to put the stop-loss. In an uptrend, for example, one can place right under the last significant dip, which I show on the charts. In upside breakout situations, a stop loss can be placed with a "filter" underneath the resistance point of break. That "filter" is used to reduce the instances of price moving back below the point of break before breaking out once again.

In response to your second comment: As I stated in the video, I don't often use built-in profit targets. As such, I didn't draw profit targets on my charts.

And in response to your third comment, if there's any other way to illustrate my points other than using charts, please let me know. I was using charts to illustrate my points. I also always mention that I generally use daily charts in my examples, but that the principles I talk about occur on all timeframes, including short-term timeframes.

Please let me know if any other questions. Thanks, Keanu!

Best regards,
James Chen