Falling, falling, looking good :)

Just thought I would say that as the GBPUSD nose dived yesterday on some less than expected news data.
We closed the day below the 1.5918 support level and my core position is still looking good to reach target.

These past few weeks have been a classic example of the importance of not risking more than you are comfortable with in a trade. I've got a big stop on this one, so my leverage is small, simple.
I have lost count of how many times I have read traders using a very tight SL because they wanted to increase their position size. They measure how many pips they can risk to stay within their money management rules and place their trade.
Now on the surface, this may see like sound advice. They have MM guidelines and they are sticking to them. Only problem is, they are going about it backwards. They are adjusting their lot size first, then calculating where they should put their SL based on this.

I'm sorry, BUT THAT IS NUTS!!!!!

After setting MM rules and following them, your next objecting with regards to controlling your risk, is positioning your SL in a strategic position so as to minimize the chance of it being hit. This means finding a suitable market position on the far side of support/ resistance or some other market parameter such as a pivot, Fib level etc. Once a strategic "hiding place" for your SL has been found, you should then calculate the appropriate lot size to stay within you risk parameters.
If your SL is a long way away, then you should decrease your leverage to maintain the same % risk exposure. If you have found a good place nearby to hide your SL, then your leverage can be larger.
It really is that simple.
Of course this means some months you will make more than others, but so what. you are taking the necessary steps to ensure you stay in the game financially and emotionally.

On another note just raised the weight on the incline press the other day by 2.5kg's. it's not much, but I could feel it. When looking for progression particularly when you feel your lifting is starting to plateau, just increase with tiny increments. This way you will feel confident about still being able to complete the required reps for each set and you won't get discouraged. Throwing an extra 10kg's onto the bar when you are pushing your limit (or close to it) already is not going to help. You'll seize up after 5-6 reps and probably pop your shoulder.
Anyway, waiting to see if the GBPUSD can finally escape heart attack alley, escape this range and head to my target.
Take care guys.

ForexFitness...