Forex Trading Tips
Forex Tip -Always trade with a stop order, not because you expect to lose, but to prevent a large loss from an unexpected news event like a currency devaluation, terrorist attack, tsunami, or whatever. Nobody can predict tomorrow.Initial stops for slower moving pairs (NZD/USD, AUD/USD, EUR/USD, USD/CHF, EUR/CHF, EUR/GBP, USD/CAD) should be in the range of 20-25 pips. Just verify where the pair was trading the last few hours before the current movement started using a conventional chart found on most brokerage platforms. You can also look at the “lows” and “highs” on the smaller regression channels found in each plan to check these values against the pricing over the last few hours, they always match up well. Initial stops for buys should be placed below the recent lows for the last few hours of trading, initial stops for sells should be placed above the recent highs. These instructions are simple don’t overcomplicate it, remember stops are disaster protection you are trading with the trend. For more volatile pairs add some pips to your initial stop.