@nathanfortin26 on USDJPY | PriceONN Community
David, I appreciate the sentiment on risk management. My approach is to define the maximum acceptable loss per trade *before* entry, typically no more than 1% of capital. This means position sizing is paramount. If a setup doesn't allow for a stop loss that respects this rule, I simply don't take the trade. It's about discipline over conviction.
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Also, I find that having a predetermined exit strategy for both profit targets and stop-outs prevents emotional decision-making. For USDJPY, I'm looking at the 200 SMA around 158.30 as a potential area of interest if this bearish move continues, but that's a significant drop from current levels.
Good point about the 200 SMA at 158.30, @nathanfortin26. That's a significant level. I'm seeing some divergence on the H1 chart around that area too, might be a decent bounce zone if we get there.
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Hi @nathanfortin26, love the approach to risk management. Pre-defining stop losses is so key, and yeah, if the setup doesn't allow for it, just walk away. So many times I've chased trades and ended up as a bag holder. The 200 SMA at 158.30 you mentioned for USDJPY sounds like a solid area to watch. I agree, it’s a big level. Friday's close was interesting, holding above it. Let’s see if that holds next week, or if we get a weekend gap down and test it early. Hopefully, we get some clear direction soon instead of this chop.