To make sure that we, the members of the Dukascopy Community are profitable each and every month I want to share with you an idea that if we put into practice then we will definitely be in profits at the end of each month. We have to find out a system, in which our stop loss and take profit is predefined. Also, we have to make sure that our take profit level is at least 3 times from the traded price as much as the stop loss is.
2. THE PLAN
We will put 1% of our account at risk on every trade. And we will aim for 3% of the account if we are right. To understand what I am talking about, we need to do a simple mathematics. Let us say that we took 10 trades in a month in this manner, where we risked 1% to gain 3%. And let us say that 5 trades were not in our favor. In other words, the stop-loss was triggered. The price hitting stop-loss 5 times means we have lost 5% of our entire capital(as we had 1% at risk on each trade and 1*5=5). At the same time out of 10, we have also won the five trades. Winning 5 trades mean that …