Today I’d like everyone to welcome Bob Iaccino fromTraderOutlook.com. Some of you might reconognize the name, and that’s because Bob is a frequent contributor on CNBC, CNBC Asia, Bloomberg Television, Bloomberg Radio, CNN, CNN International, Fox News, and several other media outlets as a special guest analyst. Yeah he’s all over the place and he knows what he’s talking about.
You can visit Bob's site TraderOutlook.com by clicking on this link.
All traders pick and entry point for a trade and once the trade is made, they look for a spot to get out. Most also identify a stop-loss level. The good traders have a target level they are looking to exit at, or a time frame in which to take the trade off. Not many however, use “2-target trades” very regularly. We use them quite often, looking to catch larger moves. Here’s why you should too.
2-target trades can also be defined as scaling into a position, but the main difference is that the trade scale is pre-planned in ½ trade increments and only when the trade is going in our favor. The levels are planned very specifically based on the risk/reward profile. 2-target trades are simple and can help eliminate some of the fear of putting on trades that have distant targets or longer timeframes. In the chart below, we have a recent EUR/USD trade that we discussed in our morning broadcast.