Thanks! i hope it works out too =)
Being new, i have a question. As i explained in my intro a few pages back, i am not going to have a lot of investment money for a coulle years, but want to open a small account to practice with.
Im thinking $500. If i risk 2% per trade, that will be a risk of $10 per trade. Which for now atleast makes things a little interesting.
But here is a problem that i am coming across. Was wanting to place orders of 10,000 lots which = $1/pip change
But if my stop loss is $10 = 10 pips, i see myself getting stopped out fairlupy quickly on some entries.
I did my first order last night. Im up 50 pips, but it initially lost 14 pips. I did not put a stop loss on that one, but if i had, i would of been out and would not be getting these profits. Any suggestions on what i should do?
My main question i guess is how to place a stop loss. Is there a minimum amount of pips you should be willing to lose per trade?
Is it solely based on S/R lines?
Thanks for the help
There is another reason why we avoid NFP. If you got a little creative, you may think NFP as:
[B]No Freaking Point
Naughty Forex Party
Nefarious Financial Prod[/B]
[B]
Nuts Frigginâ Punched[/B] (that would hurt, you know)
[B]No Fore Play ![/B] (Action starts)
[B]
Now Fly Pips !
Nasty Forex Punch
Not Freaking Playing
News Flash Poker
Never Force Profit
No Free Pips
Not For Profit
No Flipping Point
No Feckless Pansies[/B]
But, for the one that sums up the general take on the vagaries of the release as highlighted in our preview posts and comments?
[B]Never Fully Predictable[/B] :28:
YepâŚlook at the nzd. It shot up all across the board.
Geez.
Well, I learned something.
No doubt the market gets excited during big news events. And any example I have for any method or technique I use, you would be able to find something to the contrary of it, since nothing is 100% predictable. I am saying though that I have found price action signals have less of a chance of getting run over if the pairs being traded arenât directly affected by the news. I am in a CHF trade right now, and after the excitement of the news, my trade is sitting about where it was before the news happened.
With all of that being said, considering the added risk of trading during a news event is just 1 dynamic to consider. If the trade is what I would call a 4-5 star trade, and has a very high potential RR, I have to weigh that against any news risk, plus the many other risk dynamics of the market. I may come to the conclusion that the trade is worth risking. Every trade has an inherent amount of risk, the reason people enter trades is they believe they have enough support or confluence to mitigate the risk, and that the reward for the trade is greater than the risk. That is why as much as I love hard set rules for a trading method, I think the markets are too dynamic to cut out trades based on a single criteria.
You should ALWAYS have a stoploss and you should always adjust your lots based on your stoploss. I unfortunetly donât have an article written yet on the topic, but if you google ârisk reward forexâ, you should find some good stuff. Every time you plan on taking a trade, donât even think about your money. Just simply place your stoploss at the most logical place for the trade(usually above/below the price action candle). If you have 10$ to risk you take how many pips your stoploss is and calculate how many lots you can trade before you go over your maximum risk of $10. If you are trading the USDJPY, and the stoploss is 100pips, you can trade 1 microlot because that gives you a risk of $.10 per pip.
That is only half of the equation though, you also have to figure out where you will take profit(this is usually the next major resistance area). If your SL is larger than your take profit then you shouldnât be taking the trade. I almost always make 1:2 RR my minimum, which means my take profit distance has to be 2 times the distance of my stoploss. All of this should be figured out before your trade is ever taken. This becomes your âtrading planâ and helps you not get emotional and sabotage your trades.
I hope that made sense and helped out.
That goes with what I mentioned earlier, if the market is hinting to supply/demand shift, which is what I was seeing on the 3H pinbar and pickup in volume, a non related announcement can excite the market and end up pushing price along in the direction that it was hinting before the announcement came out.
[QUOTE=âkrugman25;554489â] You should ALWAYS have a stoploss and you should always adjust your lots based on your stoploss. I unfortunetly donât have an article written yet on the topic, but if you good ârisk reward forexâ, you should find some good stuff. Every time you plan on taking a trade, donât even think about your risk or money. Just simply place your stoploss at the most logical place for the trade(usually above/below the price action candle). Then you know if you have 10$ to risk you take how many pips your stoploss is and calculate how many lots you can trade before you go over your maximum risk of $10. If you are trading the USDJPY, and the stoploss is 100pips, you can trade 1 microlot because that gives you a risk of $.10 per pip. That is only half of the equation though, you also have to figure out where you will take profit(this is usually the next major resistance area). If your SL is larger than your take profit then you shouldnât be taking the trade. I almost always make 1:2 RR my minimum, which means my take profit distance has to be 2 times the distance of my stoploss. All of this should be figured out before your trade is ever taken. This becomes your âtrading planâ and helps you not get emotional and sabotage your trades. I hope that made sense and helped out.[/QUOTE]
Makes perfect sense. Thank you
I guess I am not too late to comment. I having 2 trades on since last week and I let it run for the NFP.
1 is CHF pairs and another one is JPY pairs.
I wonât let it run if I am in profit , but since I am still in loss , so I let it run during NFP , and glad that it already reduce my loss. Hope to close it soon once BE.
wrong post
Hi guys
Can anyone recommend a New York close mt4 demo account for indices? The only New York close demo accounts I have found so far are FX only.
Thank you,
BA
To add on to Krugmanâs solid advice use this great tool from Babypips:
Position Size Calculator: Free Online Forex Position Sizing Calculator
If you find sizing problematic there are brokers that will allow you to use units rather than lots so you can put on any amount as big or small as you want.
Hi Mr B try alpari.
[QUOTE=âbuster48;554591â] Hi Mr B try alpari.[/QUOTE]
Thanks Buster, I will check them out!
BA
Hello again
Just looking at this GBPAUD engulfing bar which occurred during NFP:
Along with this large pin bar on the USDCAD 4hr which coincides with a smaller engulfing pin bar on the daily:
Neither of them are 5 star trades but I wondered whether signals that formed during NFP should be ignored or should be taken as a good indicator as to where price will go next?
BA
EUR/NZD 4h BEEB
Proâs:
- nice size,
- spike in volume (@ 1h chart you can see it clearly)
- good s/r area,
- with trend,
- RR ~1:2
Conâs:
- minor resistance @1.6120,
- price retraced to 50% of the candle,
rating 3 stars
To me that doesnât look like a pin bar or a rise and rejection of a S/R level, the spike up looks like a break out of a range that failed.
[QUOTE=âslipp3ryWhippit;554580â]@jpw0100 To add on to Krugmanâs solid advice use this great tool from Babypips: Position Size Calculator: Free Online Forex Position Sizing Calculator If you find sizing problematic there are brokers that will allow you to use units rather than lots so you can put on any amount as big or small as you want.[/QUOTE]
Thanks for the info
Hi BA,
beware though, Alpari UK chart sometimes does not show the standard NY close chart. The Alpari representative once explained that itâs related to daylight saving issue. 