Hi all,

I'm trying out a KISS Way of trading. I trade breakouts of important
S/R areas and daily highs/lows. In my admittedly limited experience, I have found that when a daily high/low is broken, or a significant S/R area, the price will tend to go from the direction of this break for at least 10 to 20 pips. I am seeking to turn this information into a system that will produce consistent yields.

Now, I know that this method works, but I keep getting shaken out of transactions, likely because I pay too much attention into it. To illue, here are some transactions I took earlier today:

1) B USDCHF 1.2303 - shut it when it went to 1.2296, as you know it attained 1.2380 or so.

2) S GBPUSD 1.8972 - shut it when it went to 1.8976, then it reached a low of 1.8870 or so.

Being a professional stock trader, I'm used to being at the money that the minute my preferred stock breaks out (i.e. I am forward 10 to 20 cents at least). The minute it goes straight back to my entry price, I consider it as a indiion that I made a mistake, and more frequently than not, exit my position. This is what my boss taught me hehe. Apparently, Foreign Exchange is a very different creature.

Now, I wish to ask the pros here in FF, just how much breathing room if you usually give a particular currency when it breaks out? In other words, how can you know whether a breakout is false, or whether it is only retracing a little to collect strength? Can there be a certain number of pips that would be the optimum stop for a egy like this? I mean, if I just leave a 20 pip stop and go do something different? Any ideas, comments or remarks are welcome and will be very much appreciated. Thank you for taking the time...

Nat