I’m a beginner and sometimes find some good trades to go into. I place the trade(on demo) and all of a sudden I get hit with a massive long candle opposite of where I wanted it to go on the 1min and 5min charts. Do I just wait for it to go back down or cut losses immediately?
It is unexpected that what is happened with you but it is a very common picture in the forex market. Knowledge is so important and most of the new traders are losses their money because of their greedy attitude.
It’s a bit more complex than just waiting or cutting losses. Forex and trading isn’t a two way street, it has all sorts of interesections and obstacles on the road.
In your case I’d first go back to the reasons you’ve entered the position in the first place. Do a thorough research and identify an entry AND an exit point. Then stick to them on demo and test if you’re right or wrong about them. This way you can hone your strategy and then transfer to real accounts.