OCA Market
I want to be free from having to spend many hours behind the screen and watch how the market is going nowhere. I also want to avoid psychological stress, which are prerequisite for market surveillance. In the good days, the price goes straight to your goal. On other days, she often goes back and forth. ute to your knowledge. If you watch every move, your emotions are subjected to serious tests, because your virtual profits will then rise, then decline. Sometimes the temptation to close the deal before it is very large. For this reason, I try to avoid techniques that require constant monitoring of the market, in particular, such as Trailing stops near the support / resistance levels or analysis of thorns. Instead, I prefer to set a target, stop loss and a market order to exit at the end of the session, if no target or stop-loss will not work. Visit Wells Fargo for more clarity on the issue.
All three of these order are combined into a group cancel each other (OCA), and we have the opportunity to do all day than we wish, confident that the transaction will be carried out exactly as you planned. Another option – setting automatic trailing stop of a certain size. For example, you can do so stop dragging on the distance of 4 points below the session high for a long position or above the minimum for short. This leads to the fact that the stop can be moved automatically, we do not need to manually determine support / resistance levels during the session. We may also include a trailing stop order is in the OCA group by adding a warrant closure position at the end of the trading session. Of course, you realize that only by becoming a professional trader, but take my word, the greatest stress trader receives the monitor market movements.
Even if your position is profitable, you may be in a maelstrom of paper profits and losses, lamenting: “Why am I not sold at the height of front setback.” Sometimes traders in similar situations would capitulate and prefer to fix a small profit, just to avoid subjected to further stress, and very often the price after the rollback is in the direction of closing the transaction, forming a new extremes. If you are day traders, I would highly recommend you use the automatic exit strategy, so so you can go to work and not sit all day at the computer. Go back to the end of the session and check the results. Of course, this advice applies only to day traders, such as the author of the article. If you scalper and committing dozens of trades per day, then nothing will be able to save you day and night stay at the keyboard.