Quote:
Originally Posted by mumpips
HI Phil,
I have just finished reading your ebook. It's a good one. Thanks for sharing.
I have few questions, hope you can help:-
(1) Can you explain Stop loss on mini lot?
(2) Ref to IB, does the colour of candles matter? let say, red & green...the price will move up and green & red...the price will move down?
can you show more example on IB?
Thanks for your great help.
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Sure!
Using the same example from the ebook, say you wanted to risk $20 and your trade had a stoploss of 50 pips. That's $20/50, which is 40 cents per pip. A standard lot is $10 per pip, a mini is $1, and a micro is $0.10. If 1 mini lots is $1, then .4 mini lots is 40 cents.
Some brokers won't let you trade fractions of a lot though. If that's the case then you'll either need to get a new broker or move down to a micro account.
As for IB's, the color does not matter. Using Johnny's picture he posted the only IB I would have used to help base a trading decision off of would have been the fourth one where price bounced off the S+R zone. I only use the IB's to help confirm a reversal and to determine an entry point (a few pips above or below the IB).