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  • Casual Articles - Online Trading Forex- Which Of These 3 Mistakes Do You Make?

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    to see price resume the direction you had anticipated anyway. How frustrating!

    So always make sure your stop is set at a number other than one that ends in a zero, and reduce the number of times

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    Professional traders are full of tips and guidelines that can greatly increase profitability during your online trading Forex sessions.

    Here are 3 advice notes I've picked up which greatly reduce the number of my losing trades and increase the number and size of profitable trades:

    Mistake #1

    Setting the stop at round numbers.

    Solution: When setting your stop, avoid numbers that end in zero.

    This is not due to superstition! It's just that round numbers, especially with certain currency pairs like EUR/USD and GBP/USD, represent key psychological levels in the minds of traders and institutions.

    Price will often pull back to a number that ends in zero and go no further. If your stop is set at that level you run the risk of getting stopped out of your trade only to see price resume the direction you had anticipated anyway. How frustrating!

    So always make sure your stop is set at a number other than one that ends in a zero, and reduce the number of times y

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    the number of my losing trades and increase the number and size of profitable trades:

    Mistake #1

    Setting the stop at round numbers.

    Solution: When setting your stop, avoid numbers that end in zero.

    This is not due to superstition! It's just that round numbers, especially with certain currency pairs like EUR/USD and GBP/USD, represent key psychological levels in the minds of traders and institutions.

    Price will often pull back to a number that ends in zero and go no further. If your stop is set at that level you run the risk of getting stopped out of your trade only to see price resume the direction you had anticipated anyway. How frustrating!

    So always make sure your stop is set at a number other than one that ends in a zero, and reduce the number of times

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    s that end in zero.

    This is not due to superstition! It's just that round numbers, especially with certain currency pairs like EUR/USD and GBP/USD, represent key psychological levels in the minds of traders and institutions.

    Price will often pull back to a number that ends in zero and go no further. If your stop is set at that level you run the risk of getting stopped out of your trade only to see price resume the direction you had anticipated anyway. How frustrating!

    So always make sure your stop is set at a number other than one that ends in a zero, and reduce the number of times

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    of traders and institutions.

    Price will often pull back to a number that ends in zero and go no further. If your stop is set at that level you run the risk of getting stopped out of your trade only to see price resume the direction you had anticipated anyway. How frustrating!

    So always make sure your stop is set at a number other than one that ends in a zero, and reduce the number of times

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    to see price resume the direction you had anticipated anyway. How frustrating!

    So always make sure your stop is set at a number other than one that ends in a zero, and reduce the number of times you get taken out.

    Mistake #2

    Setting stops according to a pre-determined amount.

    Solution: Calculate your stop according to strategic levels, not an arbitrary amount.

    Many traders set stops somewhere between 20-30 pips as that is about as much as their equity will allow.

    Some new traders tend to do simple arithmetic to establish their stop level: entry price plus/minus 25 pips.

    However, it makes much more sense to look at a previous support/resistance level, trendline, or yesterday's high or low, and see if a 20-30 pip stop puts you near one of those levels.

    If it does, then calculate more precisely. It makes no sense to set a 20 pip stop if a major support/resistance line is 25 pips away from your entry level. Price is likely to go right back to that

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