The importance of determining the target in our trading

The importance of determining the target in our trading
A simple lesson about setting goals in our trades and the subject is simple but the small details are the success in the end and therefore we should care about such important points which we sometimes neglect and move away from the rules in our trading

In the beginning we must remember that the transaction based on analysis in the Forex market is based on three points

 (Entry point - stop loss - goal)

 Thus, the true measure of the success of the transaction is reaching the target set in the analysis

Set direction (target)

All the methods of analysis give the same result in the end is to determine the next direction of the price

Since the failure of the analysis is linked to the stop loss approach

The success of the analysis is linked to reaching the full objectives set out in the analysis

Specify the direction (target) interval

The price direction is different depending on the time frame used

In other words, the goal on weekly friday is greater than daily than four hours and so on.

But there is an important observation that the goal on the daily ferm as a proportion and proportion is almost equal to the target on the four hours

Because stop loss is also greater than stop loss on four-hour intervals

Therefore, the goal on the big ferris represents a longer vision and greater goals for the husband and be less on the four-hour frame and so on ..

Determine the target based on your strategy

Each strategy is based on a different strategy in determining the goals and therefore you should know when to graduate from the deal and continue to the rest of the goals to finally reach the positive results in your trading because the hardest part is trading and not analysis and therefore you must know how to take advantage of your strategy and analysis In your trades

The relationship of the goal to stop loss

The goal simply represents a success of the deal or analysis and stop loss represents the failure of the transaction or analysis

Therefore, the transaction should be based on a larger goal than the stop loss, or it would be preferable not to enter

The strongest and best equation in this topic is to set the goal of a weak stop loss

Sometimes it is possible to go out in case of a weak transaction to avoid stalling or reduce stubble

Division of goals

Most methods of analysis are determined over a target for analysis and thus to make the best use of analysis in trading

Preferably adopting the goal of double opting out of the deal is considered the best way in all cases

Or submit the questionnaire to enter in the case of access to the first goal and then submit the inquiry on the first goal after reaching the second goal and so on ..

Or closing part of the contracts on the first goal and the rest of the contract on the rest of the goals

Or close half of the contract after reaching the goal of double Astub and follow-up ..

Exit before the goal

In some transactions, it is preferable to go out before reaching the target for a weak transaction

Thus protecting the transaction from stop loss and exit without loss or at least reducing loss

Relationship of the objective to the management of capital

Capital management depends mainly on the number of lost and realized points to reach the ratio both in profit or loss

For the target, you must set a weekly target and better set a monthly target when you reach it prefer to stop or reduce the risk of the rest of the month and risk a small percentage of profits to maintain the percentage achieved

It is also preferable to define the objective of the weakness of stob in all transactions and this principle should be applied to the administration in general monthly meaning

The first example

Account $ 1000 Risk Ratio 10% Targets 10% per month

Based on these ratios, achieving $ 100 means achieving the target and losing $ 100 means losing the risk ratio

The target is 500 points per month at 500 points per month

In this case, the monthly target is equal to the risk ratio. If the specified percentage of 500 points is lost, you will need two consecutive months to achieve 500 points to achieve 10% of the account, meaning the following month will achieve 500 points to offset the loss of the previous month and in the third month 500 points to achieve 10%

The second example

Account $ 1000 Risk Ratio 10% Targets 10% per month

Based on these ratios, achieving $ 100 means achieving the target and losing $ 100 means losing the risk ratio

The target is 1000 points per month at a 500-point risk per month

Therefore, a loss of 500 points means a loss of 10% of the account in a month

And achieve 500 points give you a profit rate of 10% and achieve 1000 points give you 20%

Thus, achieving 1000 points covers a month loss and gives you a profit rate of 10%

So in the second example, the best method is

The subject of capital management will be discussed in future articles, God willing



In the end, there was a simple lesson about the importance of determining the goal in our trading and some important points that we must deal with on this subject, which is very important in our success in general