Quoting jumperDislikedI assume you are steering clear of whipsaw/consolidation markets? And that your broker allows hedging?
You don't have a stop, but do you have a take profit point? -- I can't seem to find it stated in your post, I might have missed it. But for now, I am assuming you do not have any TP point and you close all trades manually.
I am not getting this; please help me out --
Example: You have a buy stop @ 1.2780 and a sell stop @ 1.2730. Price was 1.2750 when you entered your limit orders. Market opened and price went up to 1.2800 then subsequently down to 1.2700 -- and this is when you got back from work and checked your account.
Your buy stop was hit and is now -80 pips (ignoring spread).
Your sell stop was hit too and is now + 50 pips (ignoring spread).
Net: -30 pips... how does one make money in such a situation?
If you are gunning for just 1 out of 2 trades to be hit only, then you seem to be trading breakouts. Nothing wrong, perfectly legitimate style of trading... but how do you guarantee it is a true breakout? If you can't, you might possibly get hit badly, especially if you do not have a stop loss. What goes up does come down ultimately, but it doesn't necessarily retrace 100%.
But if you say you can guarantee it would be a true breakout, goodness.... there is no need for this thread. Sell off everything you own, borrow as much as you can, then pour all the money in your trades. You will top the Forbes list in no time.
PS.: Just my thoughts, please don't take them the wrong way.Ignored