Page 41 - Module 5 - Key_Players_in_the_financial_game

Module 5 – Understanding the game between the bulls and bears

Pros and cons of moving your SL to breakeven at 2:1 R/R

what can you do to prevent price from kicking you out of the trade on a retest?
You are tired of seeing your entries retested and then see your level working well without you riding
it? We need to let price breath and orders be filled by market makers and big institutions. There are
some options to prevent that from happening:
 Move your Stop Loss (SL) to Breakeven (BE) + Spread/Commissions after 3:1 or 4:1 R/R
allowing price to breath a bit more
 Do not move the SL to (BE) after your minimum R/R ratio has been reached
o Leave the SL where it originally was, above/below your level's distal line, and let the
trade breath and take off
 Close half of your position at 2:1 R/R or even 3:1 R/R and leave your SL alone
o By doing this, your trade is safe, you can't lose, fear is under control and you will feel
more relaxed
o If you close 1/2 of your position at 2:1 R/R, you will sacrifice half of your position, the
trade is now safe, you can't lose

targets: how to manage your stop loss when your trade is running
Once your trade is running, there are several ways of managing your SL. Managing your SL is key to
become profitable, you must have rules to prevent you from closing your trade too soon.
First, you need to define your targets. A target can be either fixed or dynamic. A fixed target (exit)is
a specific price where you will exit your trade. This price can be different depending on which type
of exit you decide. You must decide before on the pre-plan stage of your trade.

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