A little advice please

Hi, I am new to Babypips and would just like to say what a great site it is.
I have been looking at trading for a few months now and since finding this site I realise I need a plan to succeed.

I am working with the 3;1 reward risk ratio as suggested in the school of pips. I am using a 10 pip stop to a 30 pip profit. I notice that alot of traders will only aim for this per day so should I drop to 5 to 15 or will this risk me getting cut short in trades. I have been using a trailing stop to move the stop loss when in profit.

I am trading with GPD/USD when London opens shortly after I get back from work. I was also wondering as I get some days off in the week what other pairs could I trade during the day. I am GMT +10.

Thanks.

Since your stop loss is 10 pips and take profit is 10 to 15 pips, it should be ok. You are targeting for 1:1 ratio. Most of the successful traders say that you have to target for a profit of equal or more than you loss set up. So you should be ok. But I don’t go for 10 pip stop loss also. It depends on the time of trading I am doing. If you trade at the beginning of London or US session there is a lot of volatility and there are more chances that it will hit the stop loss.

There sure are a lot of forex sites on the net.

I’m guessing that you are in eastern Australia. If so, your time zone is actually [B]AEDT = GMT + 11[/B], because your part of Australia is currently on Daylight Saving Time. In a couple of months, you’ll be back on Standard Time, and then your time zone will be GMT + 10, once again.

If I’m right about your location, then — in addition to the European open at 6pm AEDT, and the London open at 7pm AEDT — you might want to pay attention to the time period [B]11am - 1pm AEDT. [/B]

This corresponds to the morning session of the major stock exchanges in Japan (Tokyo Stock Exchange, and Osaka Securities Exchange). This is often the most active period of the Asian Session.

During this time period, you can find trading opportunities in the major pairs ([B]EUR/USD, USD/JPY, GBP/USD[/B] and [B]AUD/USD[/B]),
as well as the major yen crosses ([B]EUR/JPY, GBP/JPY[/B] and [B]AUD/JPY[/B]).

I hate to break it to you but not every state in Australia runs daylight savings time so GMT + 10 may be right for his/her location. :wink:

Hi thanks for the replies. I am in Queensland so GMT +10.

Me too!! Yay

With stops that small, you’re going to be trading off a 5-minute chart I’m guessing. It sounds like you don’t have a lot of time to dedicate to watching charts, so have you thought about looking at higher timeframes? Maybe the 1H or 4H or even the Daily?

If you find smaller timeframes hard to work with, try moving up before giving up!

It really is a matter of testing different combinations to find the ones that suit you - smaller SLs are more appropriate for smaller timeframes, while larger timeframes necessitate the use of bigger SLs. Experiment with the different timeframes & SLs to find the ones that you are comfortable with.

Thanks for the help guys.

I’d recommend trading a longer timeframe if you’re new to trading. Just so you have time to really think and analyze what you’re doing.

When you trading on 5-min, it’s pretty much by instinctive competency.