Hello Idejs,
In order to answer your stoploss question... what do you consider a big range?
Stop loss settings on this method are not determined by the number of pips, but by past price action as you read in the thread. Placing the SL bit lower than the last valley in a long trade.
Where to exit is totally up to you. But you might also look at price action in the past to see what happened at a certain price. Especially where price is consolidating over several time periods. So if over time price returns to a certain level where it has been in the past, see what happened there. Did buyers or sellers come into the market, driving the price up or down?
If your SL seems that it would use too much of your equity if it gets hit, then either pass on the trade or trade smaller lots ... less than a dollar. (Only some brokers allow this however.) When you looked at Kevin's entrys and trades you might have seen that he traded for example 1000 units (this is with Oanda). Depending on the pair, this could be, 10 cents a pip.
Some thoughts: As a beginner, use a demo account ONLY to learn how to use the software, charting, placing an order, closing a position and so forth.
When you start to trade, after you know how to use the charting package, trade with very small amounts... as above maybe 10 cents a pip. Especially if you have a small account. This will give you a better feel for the psychology of trading. Using a demo account does not really get your mind and emotions into it. Whereas trading with your own real money will be different. But as a novice trader, it is much better to make a 10 cent a pip mistake than a dollar a pip mistake.
Hope this helps.
Lou
In order to answer your stoploss question... what do you consider a big range?
Stop loss settings on this method are not determined by the number of pips, but by past price action as you read in the thread. Placing the SL bit lower than the last valley in a long trade.
Where to exit is totally up to you. But you might also look at price action in the past to see what happened at a certain price. Especially where price is consolidating over several time periods. So if over time price returns to a certain level where it has been in the past, see what happened there. Did buyers or sellers come into the market, driving the price up or down?
If your SL seems that it would use too much of your equity if it gets hit, then either pass on the trade or trade smaller lots ... less than a dollar. (Only some brokers allow this however.) When you looked at Kevin's entrys and trades you might have seen that he traded for example 1000 units (this is with Oanda). Depending on the pair, this could be, 10 cents a pip.
Some thoughts: As a beginner, use a demo account ONLY to learn how to use the software, charting, placing an order, closing a position and so forth.
When you start to trade, after you know how to use the charting package, trade with very small amounts... as above maybe 10 cents a pip. Especially if you have a small account. This will give you a better feel for the psychology of trading. Using a demo account does not really get your mind and emotions into it. Whereas trading with your own real money will be different. But as a novice trader, it is much better to make a 10 cent a pip mistake than a dollar a pip mistake.
Hope this helps.
Lou