Okay, so the referendum is done with. Some massive swings, no doubt some big winners and losers.
Time to move on and start thinking about our next move, whether thats another trade or some more learning. See what comes out over the weekend and prepare for next weeks trades
See 
It turns out I was wrong and got stopped out slightly above breakeven. On the other hand I had two sell stop orders on GBP/USD at 1.458 and 1.445 (when the price was at 1.49 - the logic was: if I’m wrong, the GBP will spike down and it will go to at least 1.42) and they were triggered (and went lower than I thought, and I closed at 1.33)… so it turned out fine after all. But as eddieb said these types of situations should be avoided by beginner traders. But once you know what you are doing you can make some profit when they happen.
I think one should trade such events, I made 931 pips yesterday.
You got lucky, you could just as easily have lost. Hopefully you’re trading on demo and not live
M trading with a live account, no offense I m pretty happy getting lucky again & again…
No offence taken, its your money to trade as you wish.
Oddly, I’m with him but I may be wrong. Isn’t forex all about volatility? News is where one can make plenty folds in profit and still maintain the same stop loss. So, why lose that opportunity.
Take the Brexit news as an example as its so recent.
GbpNzd, which I trade a lot, initially went up 200 pips. If you’d expected it to fall you would have been stopped out (unless you had an extraordinarily wide stop position).
If you’d expected it to go up your delight would have been short lived as it then plummeted 1800 pips, so again you would get stopped out.
News events can be seen as an opportunity, the problem is that even if you correctly guess (anyone using the word predict is kidding themselves) you cannot be sure how the market will react.
If you do want to trade high risk news events, I would suggest putting a small portion of your trading money into a separate account just for this. That way the bulk of your money is still safe
Yes, I’d get a stopped out if it’s 200 pips as my usual stop loss is around 15 pips. Since taking up this forex (learnig), I have yet to look into other pairs to trade on. I think its wise to just concentrate on one, EUR/USD, not forgetting about the fundamentals that I need to catch up on everyday.
Thank you and yes, totally agree on your advice on a seperate small trade account for news event. Thank you, once again. This advice is priceless…
What would be your advice, to activate my small account on ipad or laptop?
I’ve been doing my demo with iPad and I also has another new demo with limited $3k on my laptop. I find the way they operate differently. On my laptop I can’t execute a standard lot on the $3k demo but on iPad I can. I can only managed to execute a 0.5 lot with 15pips SL on my laptop. Perhaps, it’s the equity difference of $3k and $100k account.
There are indicators that laptop have but iPad didn’t, not that I’m using them in the near future. What would be your advice? I have 2 little account, don’t know what’s the leverage, lol, that I want to try to see how I react to the emotional side of trading.
You should get the proper knowledge about forex which is available on the interment and then you should start your demo trading with full honesty and should spend at least two months on demo account then you can become the good forex trader.
I have something similar. Ive downloaded mt4 from my broker onto my desktop but use their app on my tablet more often just for convenience, even though it has limited features
Indeed. If you read the quoted text you’ll see that I also made profit on GBP/USD. But as eddieb said it may have turned the other way around. I’ve been trading Forex for a very long time and believe me, I’ve seen lot of things. This time you were lucky, the next may wipe out your account. But then again, it’s your money and your responsibility.
There’s certainly information out there if you look for it. There’s also a superb free school right here on BabyPips.
Best Time To Trade
If you have nothing preventing you from trading at any time you choose, when would be best?
Personally, I would have thought that if I traded, for example, EurUsd since its the most popular pair, then the optimum time would be during the latter part of the European and early part of the US sessions. After all, thats when most traders are busy, its when most EU, London, and US announcements are made.
Surprising then that a survey by brokers FXCM found this…
"We analyzed over 12 million real trades conducted by FXCM clients, and we found that trader profits and losses could vary significantly by time of day. That data showed that most traders are what are called “Range Traders,” and their successes and failures very much depend on market conditions. In fact, this trading style means that many of them have trouble being successful in forex because they are trading during the wrong time of day.
Most forex traders are more successful during the late US, Asian or early European trading sessions – essentially 2 PM to 6 AM Eastern Time (New York), which is 7 PM to 11 AM UK time."
This chart shows the volatility peaks for EurUsd as FXCM found it
So, if it can be fitted around your lifestyle, it looks like this is the best time to trade
1 Like
What’s the difference between the trading session other than volatility? Do US trade to support US, EU support Europe and Asian support Asian?
Asian countries are more likely to make major announcements during the Asian session, European in theirs, US in theirs. I would have expected most volatility to be around these announcements. That’s why I was surprised that EurUsd is most volatile in the Asian session. The article doesn’t explain why this is the case as far as I can see.
[B]Don’t open a trade while an existing trade is losing[/B]
Most new traders have limited resources, so we don’t really want to watch as 2, 3, 4, or more trades all running at losses.
Hopefully when you’ve opened a trade you’ve put a stop in place. If so, great, at least you know your losses are limited, although its still stressful watching price go against you. Now multiply that stress by the 2, 3, or 4 other losing trades you have on, not very pleasant is it?
Wait until your trade has its stop at break even or better before entering a new trade. That way you can mentally set the first trade aside and concentrate on setting up the new one.
Namaste
Thanks Eddieb
I think you have provided a sound approach for risk management. However, I would personally consider opening a new trade, even if my existing trade was floating a loss. This is assuming the stops I set limit my risk on each trade to 2% of my equity. Also, I would limit my total effective leverage to 10:1 across all open trades.
Very good suggestion, Jason, thanks