Lesson 8

6. Breakout Trading

7. Stop-loss and Entry

Trade entries and stops will be discussed in this lesson. Many people ask me where they should enter their information. In this lesson, I try to cover as much as possible so that you can make the correct entries. Of course, a good stop loss is also critical, and I’ll go over that in this lesson.

What else to remember if you want to trade with a good setup:

• In the zone, there is a clear rejection.
• An unambiguous retest in the zone (in case of a breakout) It’s best not to enter the breakout itself because it could be a ruse!
• The trade has a good risk/reward ratio. (There will be no high stop loss at a small profit.)
• Avoid trading in low-volatility markets. Know the correct times to trade the pairs you’re trading.
• Don’t trade during the news, so keep an eye on forexfactory.com

If you want to trade support and resistance with the least amount of risk, I always recommend following the Trend and looking for good setups that go with the Trend. Not only will you be able to take the majority of the pips, but you will also be taking lower risks.

If you want to trade a counter, I will only do so if you have a lot of trading experience and can spot when the trade is going in the right direction. This can happen at any time, so make sure you always have an excellent Stoploss in place, so you don’t lose too much money.

We all know that trading does not always result in a profit, but in order to do so, you must eliminate as many threats as possible, and you have to ensure that you win much more often than you lose!