Hello to all. In the joint question, the third answer is considered the correct one while I believe it should be the second one, more precisely just above the lower break point. Do you confirm ? also in the quiz, they state that the currency pair that gives the most hiccups among EUR/USD, USD/JPY, Gold, and GBP/CAD to trade news is the GBP/CAD, why so ? is it cause it’s less liquid ? Thanks
You are correct. Stop Loss placement is subjective. The worst place you can have one is where everyone else has them… just above the upper consolidation.
If Babypips School was correct, this forum would be full of profitable traders. In fact, doing the exact opposite of what Babypips teaches gives a much higher chance of being successful.
I have no idea about Gbp/Cad… because it’s an exotic cross? The market changes by the minute. To predict that one pair is going to be more volatile than another during a random event is futile as well. Or else option traders would take advantage of the increase in IV during that time.
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Thanks for the reply. I totally agree with you on the fact that following Babypips dogma sometimes has an adverse effect to what is desired. This doesn’t however negate that there is substantial value to what is taught as a beginner step.
Why would you have a bearish outlook on a pair trading in a tight range?
Devil’s advocate here. The question is assuming that you want to trade the news, and assumes “you have a bearish outlook”. It doesn’t ask from where you have decided to have a bearish outlook, and if that is just a “gut feeling” you are not trading, but gambling. Treat Babypips education as a starting point, but if you fully follow the spirit of the education you will conclude that since “trading the news” is based on an outlook without explanation of how you arrived, by measurement and statistics, at that outlook, it is of no practical use. I do believe there is some merit in analysing trading AFTER the news, but that is a different story.
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