Trade Forex Successfully with
Support and Resistance Strategies
Improve Your Forex Success with Valuable Techniques.
Exiting the Head &
Exiting the Head & Shoulders Trade
Exiting the Head and Shoulders trade is fairly straight forward. For this forex trade you’ll want to first find the difference in pips from the neckline to the top of the head. Then, take that number and set it as your profit target. See the forex chart below for a perfect example of this:
For this course please keep in mind the following rule of thumb: Never risk more than 5% of your account on any single trade. For example if you have a $10,000 account the most you can risk is $500. Therefore if your stop loss is 100 pips the biggest your trade size can possibly be according to this rule is 5 mini lots or $50,000. This is calculated by dividing your max dollar loss by the number of pips you can lose if your stop loss gets hit. It is typically much better to risk even less, more along the lines of 2-3% of your account on each trade.