This is the simplest method of them all.
You simply decide what risk reward you would like to trade with we would recommend at least 1:2 risk reward ratio but the higher you can get it the better.
So let’s say you go with 1:2 and you decide to risk 30 pips on each trade.
This means that you would be aiming for 60 pips profit because 60 pips is double 30 pips.
If, in this scenario you were looking for a 1:3 risk reward ratio you would of course be aiming for 90 pips profit on a 30 pips stop loss.
The benefit of this method is that it is really easy to follow and thus be consistent with.
The negative aspect of this one is that it’s not very reactive to market conditions or price action. You are effectively ignoring all that and treating every trade the same when in reality each trade is unique.
You can decide that you want to use one of these methods to exit your trade or you can use a different one or you can even combine elements from several and make your very own!
The point is, that whatever you decide to go with you need to make sure it adheres to the ethos of success that we promote but also that you stick with it and follow it with discipline and consistency.
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