Sunday, December 17, 2006
Forex day Trading System - Observation from previous trade
Forex day Trading System - Continuation of previous message..
In the last post I mentioned that how did I lost in a trade because of fundamental announcement. The announcement broke at 8:30 AM EST and I made the trade at 8:15 EST. The fundamental announcement moved against me and the trade hit stop loss in 5 min..
Now, further to that trade I observed that the currency pair of EUR/USD kept falling and falling and very soon touched 130 pips below my stop loss..
So, here is what I trying to emphasize - learn the importance of stop loss in forex trading online.
If I wouldn't have placed a stop loss, currently I would have been 207 pips in loss..
So, never ever place a trade without a stop loss..This is important for forex day trading or swing trading sytem or in any system for that matter. Let your stop loss be at any point you feel comfortable (on the basis of your technical analysis, such as EMA or candlestick etc..) , but there should be one.
Meanwhile, since it started falling, I placed a trade on USD/CHF pro USD and I am currently 56 pips up..However, per my stop loss, I am still not breakeven since my stop loss is still 15 pips below my entry point..
More details on this trde in another post..Oh, by the way, in the next post I'll give answers to some questions the readers of this blog have posted.
Please keep visiting to learn more on forex trading online.
In the last post I mentioned that how did I lost in a trade because of fundamental announcement. The announcement broke at 8:30 AM EST and I made the trade at 8:15 EST. The fundamental announcement moved against me and the trade hit stop loss in 5 min..
Now, further to that trade I observed that the currency pair of EUR/USD kept falling and falling and very soon touched 130 pips below my stop loss..
So, here is what I trying to emphasize - learn the importance of stop loss in forex trading online.
If I wouldn't have placed a stop loss, currently I would have been 207 pips in loss..
So, never ever place a trade without a stop loss..This is important for forex day trading or swing trading sytem or in any system for that matter. Let your stop loss be at any point you feel comfortable (on the basis of your technical analysis, such as EMA or candlestick etc..) , but there should be one.
Meanwhile, since it started falling, I placed a trade on USD/CHF pro USD and I am currently 56 pips up..However, per my stop loss, I am still not breakeven since my stop loss is still 15 pips below my entry point..
More details on this trde in another post..Oh, by the way, in the next post I'll give answers to some questions the readers of this blog have posted.
Please keep visiting to learn more on forex trading online.
