Hello Nick and welcome.
I am too rather suprised that others havent asked more questions! lol
Yes, that is indeed a valid question[s].
One of the best resources by far for newbies is the babypips school on here, so I would strongly suggest going through it all, if you haven’t already?
With regards to scalping, in my opinion, its very advanced and not suited to everyone, so don’t be disheartened if its not gone well. With scalping your brokers spreads are especially important, ie you need very low spread, to avoid constantly fighting against them.
I would say for newbies probably the best time-frames to trade off of are either intraday time-frames like the 15m or say longer like the 4hr, with trades being held for possibly as short as minutes or as long as weeks. OR what I would consider a medium to long term time frame like the daily, with positions being held for weeks or even months.
With the longer time frames/trades there is less negative effect from unpredictable price movements ie unseen fundamentals. [news in general…, elections, disasters etc etc]
With regard to your AUD/NZD you will see that I am actually currently long in that pair, although that doesn’t mean that your trade is necessarily incorrect. It is my opinion that medium to long-term, the AUD/NZD will be going up [the AUD getting stronger], but its entirely possibly to make money selling in a bull market, as price always pulls back at some point.
However, assuming that I’m right [tempting fate here! lol], its possible but not probable a short would be successful. What i mean by that is, I believe that FX is all about probability, the long-term trend should, in my opinion, always be taken in to account, whether your trading off a tick chart or a daily chart… why stack the odds against you?
The way in which your stops, limits and entries should be chosen and executed should be due to validity and that ALONE!
I’ll elaborate, and this is in no way meant to sound like a criticism, because its not, everyone is learning, even professonal traders!! When you say ‘Do I just wait for 100pip profit then set stop to break even and leave it there?’, this doesn’t make any sense [in the nicest possible way. lol] a numerical value that is chosen by a person for any reason other than the valid price action itself is useless.
The markets don’t care weather you have a 100 pips stop or a £1000 at stake etc, those numbers aren’t relevant. Stops, limits and entries should be based on price action,… what the price has done, is doing and then hopefully will do. The decisions will come from what ever your trading system is based on [it generally takes years to create a profitable system], ie support and resistance, Fibonacci, Ema’s etc etc.
As an example, when you looked for you trade certain things may have been considered, like a trend downwards [which there has been] or lower highs and lower lows looks like a reasonable bet to most for a short? How ever is this just a retracement/pullback in a much larger, much more powerful, much more important trend upwards??
Either way, once the entry is decided then a stop and limit should also be decided. These may be done at the same time or after. If after, they could invalidate the entry, ie the position turns out to be a false economy/bad risk to reward, so in fact taking the positions isn’t a good idea because you are fighting the odds. However a ‘good’ risk to reward is not necessarily a risk to reward of 1-10, because its useless if actually it never works!
Generally price action works in trends and retracements so often denoted a risk to reward of similar, IE. 1-1, 1-2, 1-2.5 etc
Once the entry is taken and the stops and limits are placed [would should be predetermined] then once the position has moved positively the stop may be pulled up or trailed once price action has achieved criteria set in your tried and test PRACTICE trading system. ie. it has completed 50% of the position, it has past an Ema of significant, it has done some many candles, days etc etc, what ever gives results. This is something that only testing, generally over years can achieve.
You are Right in looking at 52week high lows etc, these ARE significant…so you are learning, not everyone does.
I hope at least some of that makes sense. lol
If you have anymore questions email me at; <email@example.com>