Its trailing stoploss strategy already discussed in this forum. Its really a nice strategy to secure profits.

yaa but this is one of my method of money mangment i use diffrent money managet methods for my risk ratio and invesment 

AFAIK......, market is always move upside down, for example: if we already get 1.4055 from 1.4045 usually price do some re-test and turn back below 1.4055, and then faster continuing again to 1.4055 or up......so if we always changing SL 5 point below current price, usually we just only get profit $5 (5 pip)

Isn't it to fast to TP (SL +5)?

I think the biggest problem which plagues most traders is undercapitalization. Yes you can start trading with 100$, but it doesnt mean its a good idea. Trading is a full time job, and unless you live with your parents in some country where 5$ makes you king, you are in trouble.

Let me explain.

5% on 100$ = 5$, which is barely enough for a cup of Starbucks coffee.

however 5% on 20,000, now your talking about enough money to live well in most countries, and a part time job in mine.

Trading with 100$ is actually harder then trading with 20,000. As you forget that its real money and scoff at the 1% gain.

In summary by trading with smaller amounts, you are less focused on the % and more on the actual dollar value, which is yet another issue which leads to failure for small traders.

Originally posted by TheFXHelpers

I think the biggest problem which plagues most traders is undercapitalization. Yes you can start trading with 100$, but it doesnt mean its a good idea. Trading is a full time job, and unless you live with your parents in some country where 5$ makes you king, you are in trouble.

Let me explain.

5% on 100$ = 5$, which is barely enough for a cup of Starbucks coffee.

however 5% on 20,000, now your talking about enough money to live well in most countries, and a part time job in mine.

Trading with 100$ is actually harder then trading with 20,000. As you forget that its real money and scoff at the 1% gain.

In summary by trading with smaller amounts, you are less focused on the % and more on the actual dollar value, which is yet another issue which leads to failure for small traders.

Very true. Many traders start with around $100 and try to double it in a few days by high leverage. Most of the newbies blow their small accounts just bcoz they try to make big $$$. Larger capital allows u to trade at lower risk.

I think that small account sizes give new traders the chance to feel FOREX as they develop into profitable traders without risking a huge lump of cash. I moved my small standard account into a micro account, which essentially gave me the same trading power in terms of wider stops as someone with $5,000 in a 10k account.

Success does not have to be measured in $s. I focus on PIPs for a single lot rather than $/£, that way I'm standardising the P/L regardless of PIP cost, number of lots traded per trade and monetry value of profit or loss. I think that calculating 300 PIPs of profit for a 2-lot position instead of 150 PIPs for the actual move skews the actual PIP P/L.

I agree with Widhie75 that a 5 PIP trailing stop is far too close to the price. It's begging to be stopped and actually cause you to lose profits if prices continue in the original trade direction. 

Originally posted by leebut

I think that small account sizes give new traders the chance to feel FOREX as they develop into profitable traders without risking a huge lump of cash. I moved my small standard account into a micro account, which essentially gave me the same trading power in terms of wider stops as someone with $5,000 in a 10k account.

Success does not have to be measured in $s. I focus on PIPs for a single lot rather than $/£, that way I'm standardising the P/L regardless of PIP cost, number of lots traded per trade and monetry value of profit or loss. I think that calculating 300 PIPs of profit for a 2-lot position instead of 150 PIPs for the actual move skews the actual PIP P/L.

I agree with Widhie75 that a 5 PIP trailing stop is far too close to the price. It's begging to be stopped and actually cause you to lose profits if prices continue in the original trade direction. 

 

yaa that is great as i said a great trader dont see dollors he see the pips that he generate 

Originally posted by leebut

I think that small account sizes give new traders the chance to feel FOREX as they develop into profitable traders without risking a huge lump of cash. I moved my small standard account into a micro account, which essentially gave me the same trading power in terms of wider stops as someone with $5,000 in a 10k account.

Success does not have to be measured in $s. I focus on PIPs for a single lot rather than $/£, that way I'm standardising the P/L regardless of PIP cost, number of lots traded per trade and monetry value of profit or loss. I think that calculating 300 PIPs of profit for a 2-lot position instead of 150 PIPs for the actual move skews the actual PIP P/L.

agree with Widhie75 that a 5 PIP trailing stop is far too close to the price. It's begging to be stopped and actually cause you to lose profits if prices continue in the original trade direction.

Thats very true that $ value is not a standard of success. Its basically pips. I also agree with the calculation method that actual increase in pips should be counted.

5 pip trailing SL is not suitable when u r doing swing trading. But for day traders, it can be ok.

nope i think more than 25 pips is ok if you are 50 pips in gain and there is another technique that you risk half of your pips like trilling stop at the half pips that you gain 

Money management is a very important content of a profitable trading plan and it is important to use it effectively to minimize the risks and reduce our losses and its tools like stop loss , take profits and trailing stop loss are effective tools and traders should use them to perform profitable trading .