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Moving on, I think you will guess what is coming next. This time we will
be using x3 the initial risk as our target; the larger the target is from the
entry point the number of times you need to select winning trades is
reduced.

Because we are now in a ratio of 3-1 we can afford to be wrong 70% of

the time and still make money. It is quite staggering to think we only
need to win 3 times out of every 10 trades we take – but we have not
finished yet because there is a way of reducing this even further.

You can see from the screenshot of a live trade (above) that our x3
target on this trade has a 58 pip stop-loss x 3 = 174 pips.

Now this trade might hit our profit target of x3 or it might reverse – we
will never know. Not allowing for a “Gap” this trade is at breakeven and if
the price reverses from where it is now, we will not lose on this trade. So,
out of your 10 trades we have to factor in how many trades will be like
this one and finish at breakeven. The percentage of the time that we
need to be correct has now reduced from 30% – in reality, if we can get
a couple of trades to breakeven, out of each 10 trades the amount of
times we need to be correct will be about 2-2½out of 10.

Moving your stop to breakeven is a sure way to relieve the stress of the
trade, but be careful not to move it too soon, only to be taken out
prematurely.
end

My teaching style is a little back-to-front from that considered normal, as

the actual entry is the last part in my sequence of importance.

The Plan

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Money Management
The Exit
The system

www.21-trading-systems.com is a complete trader`s guide.

You must remember a trading system is a component part of a trading

plan and by having a structured, short, medium and long-term plan in
place your chances of wealth building will greatly increase.

Warmest regards

David Curran & (21-Trading-Systems Team)

Helping people to understand how to trade

P.S. If you have any support issues with any of these 21-exit-strategies
please email them to Support@21-trading-systems.com

quoting reference {Exit _ _} number of the exit strategy.

We aim to answer all support enquiries within 24 hours

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Forex Commodity Futures and Stock speculation is not without risk, please note that no method of trading is foolproof or
without difficulty. There is risk of loss trading any financial product. All the trading systems and trading methodologies
presented in this book are for traders educational purposes only and do not constitute investment advice. You must be
aware that there are risks in any type of trading.

The writer and publisher of this book is not a licensed financial advisor and no part of this document or associated
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extensive research.

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All rights reserved. First published in 2011

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