Wayne McDonell provides analysis of the currency market: OCO analysis.

Speaking to a lot of new traders from all around the world is one of the perks of my job. Recently, while talking with forex traders in New York and, later, in Dubai, a common question was: “Wayne, I’m pretty good at picking the market’s direction, but my trades break even a lot. What should I do to improve?”
Was this a good trade to take?

I believe some advice given in the Nov/Dec 2009 issue of YTE is worth repeating: ‘…let’s say you are in a profitable trade and you get the urge to move your stop to break even. Instead, take profit. Then continue to watch the trade. Measure how you would have done if you left the stop alone as against if you had moved the stop.’...

Excerpted from an article originally published in the Jan/Feb 2010 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
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