Friday, March 20, 2015

How to Maximize Gains When Trend Following

One of the more common forex questions I get from traders is…
“How do I follow the trend longer-term?”
In other words: How do we get as many pips as we can out of a big trend?
It’s a three step process and requires two type of profit targets.
1) A non-negotiable, parked profit target
2) A trailing stop loss based on historical price movement
The key is knowing when and how much to ratchet the stop!

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