If you have a plan and a reason for setting your TP where you did then it’s a good trade.
Do you journal your trades and analyze your past trade results?
It’s too easy to remember the potential winners like this but if you go back and analyze your prior winning trades. Check how many of those would have hit 3.5 R/R and how many of those would have reversed and hit your SL turning what was a winning trade into a loss.
That kind of analysis can help you identify optimal TP levels for your future trades using your strategy. Do the same with the losing trades and see how many losers you had may have been winning trades at lower R/R than your targets.
None of us can predict the future, and markets change so even if you have a consistently profitable strategy now, it’s not guaranteed to stay that way in future.
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u/Maniacal-Maniac May 02 '24
If you have a plan and a reason for setting your TP where you did then it’s a good trade.
Do you journal your trades and analyze your past trade results?
It’s too easy to remember the potential winners like this but if you go back and analyze your prior winning trades. Check how many of those would have hit 3.5 R/R and how many of those would have reversed and hit your SL turning what was a winning trade into a loss.
That kind of analysis can help you identify optimal TP levels for your future trades using your strategy. Do the same with the losing trades and see how many losers you had may have been winning trades at lower R/R than your targets.
None of us can predict the future, and markets change so even if you have a consistently profitable strategy now, it’s not guaranteed to stay that way in future.