I have been trading for a few months and thought I was getting a good hang of things
I am studying a book with basics of signals and everything regarding this industry… but I remember reading to watch the spreads as that will be profit you give to broker which is fine but today I was trading with a 3 pip spread around 4:55 and then around 5:20 it jumped to 90 pips… and then now it is around 7 so hows does someone justify that while you entered in with a 3 pip spread and then just the spread alone jumps and I loose money I actually was landing where I thought it was going to go I should’ve made about 70 pips instead I never made any profit due to the ask price going higher and higher
So my question is how do I know if a spread will change like that during my trade and how do I know when it will go back… what makes this change happen and how do you guys trade with keeping this in mind with your trades!
Apart from that trading with a 3 pip spread suggests you must be day-trading and you’re visually watching the trade from entry to exit. If you’re not an expert trader who is already successful, stop doing this and trade long-term using a pre-set stop-loss. (With your new broker.)
That is one hell of a change in spread. You did not mention what pair you were trading. Normal currency pairs won’t have such high spreads. The highest I get from my broker on major pairs is less than 3pips.