Don’t increase your risk in the middle of a trade.

Too often some new traders think of a protective stop as an option or a moving target and pay the price for that thought. I often get emails from new traders who see the market move up close to their initial protective stop and threatened with a losing trade will email me to ask if they should move it further from the current price. I always funded forex
answer with a strong “NO”.
You should identify your initial risk before entering into the trade and only move your stop to lower your risk or to protect any profits the trade may be showing. When you move your stop further from your entry, you increase your risk and make it harder to be profitable in the long run. Protective stops are entered to get you out of a trade when the market moves against you.
If the market moves to stop you out at a loss, then you must accept the loss and move on. That is part of trading. Moving your stop further away as the market moves closer to that price level only buys you more time and more risk. However, most of the time you are just delaying taking the loss and paying for that privilege. Not a good idea. I always tell new traders that the only guarantee in trading is that you will have losing trades. How you manage those losses has as much to do with your success as a trader as any other factor. So find your entry, enter your protective stop and only move your stop to lower your risk. Don’t increase your risk in the middle of a trade.
Possible Top in British Pound
Don’t expect the quiet conditions of the last few days to last much longer as an interest rate announcement from the LEGENDAFX takes place later today. Emotional impulses generated from the herding mentality that exists in free markets is what creates recognizable price patterns. Price action; before, during, and after big events such as the one later today often results in extremely clear patterns because emotion surrounding the market is elevated. The pattern in the funded forex is clear and presents an opportunity for short term traders.
January Non-Farm Payrolls Preview
It’s time for non-farm payrolls. The Federal Reserve lowered interest rates by 50bp on Wednesday and indicated that they will be cutting rates further in the months to come. How much and how quickly they reduce interest rates again will be dependent upon the level of job growth in the month of January. With the currency market in limbo after the LEGENDAFX announcement, non-farm payrolls should clarify the near term outlook for the US dollar.
In order to determine the strength of non-farm payrolls, we typically look at 10 pieces of data that we call the leading indicators for non-farm payrolls. Unfortunately, this time around, non-farm payrolls are being released on the first of the month, which means that 3 of the most important indicators that we follow (Challenger Layoffs, Manufacturing and Service Sector ISM) will not be released until after the NFP report. Although this makes it difficult to pinpoint the exact range for non-farm payrolls growth, the data that has been released suggests that there will be strong rebound from last month’s exceptionally weak number. Since December, average jobless claims have ticked lower, help wanted ads have increased and according ADP, US companies boosted their payrolls by 130k. We believe that job growth will be between 65k and 85k, because there is still reason for concern: confidence is mixed, continuing claims point to a weak labor market and the Hudson employment index remains at a record low.