Since you are a beginner. let me show you something (if you have not already seen it)
this is just a very convenient example of HOW YOUR ACCOUNT CAN GET BLOWN OUT as a beginner
and how the market doesn't care about your positive thinking.
Everything in forex is fine for the most part, UNTIL SOMETHING LIKE THIS HAPPENS
this is the EUR USD H4 (4 Hour Chart)
ignore the dotted lines
the RED LINE is at 1.2318
the YELLOW LINE is the current price.. IT DOESN'T MATTER in this example
the GREEN LINE is at 1.2034
the BLUE LINE is at 1.1928
NOW HERE IS YOUR SCENARIO...
YOU ARE AT THE FIRST RED "V"
You've done your analysis and you figured
Price has risen up, it's not stopped
you are getting lower lows and lower highs after a range period
it then pops up again a little then ranges and down again
so. YOU THINK........ SELL
well CONSIDER THIS
from the BLUE LINE to the RED LINE THERE ARE ..........390 PIPS
Now... if you got in at THE GREEN LINE at THE SECOND RED "V"
and you were selling
You'd now be broke or saying the F word as loud as you can many many times over hehe
THIS IS THE SCENARIO YOU NEED TO PREPARE FOR.. ok
you should always assume that THIS COULD HAPPEN ANYTIME
And if you do this, you will never get caught off guard
do some research on EUR USD you'll see things like
"Many people got caught off guard this week with the EUR USD" etc etc
now.. i wonder why that is.. huh
this is clearly and oversimplified example
but THE POINT WAS.... Understand this can happen anytime (this is proof)
and PREPARE FOR IT
go away and work out how... if you were SELLING at the green line at the red V
HOW WOULD YOU MANAGE YOUR RISK ON THIS TRADE ?
or how would you have managed it
remember, AS ITS HAPPENING,......... YOU DO NOT KNOW HOW FAR IT WILL GO UP
keep that in mind