DislikedSorry to hear about your loss videoman555. Earlier today I had significant amount of money invested in Euro and Sterling because I thought these were due for a bit of correction. Thankfully my stops were triggered in time and I ended up making only a minor loss. If I did not have an effective money management in place I probably would have lost a lot more than you. The key to this business is keep your losses minimum and let your profits run. Also NEVER risk anything that you can't afford to lose.
One of the key aspects of understanding market movements is to determine whether it is trending or ranging. Until yesterday Eur/Usd was stuck in a range and today it has started a significant new trend down. I believe that now there are two options for traders. First is to follow the trend. This requires you to know how far the current trend will go before consolidation takes place. Personally I find this tricky because it is nearly impossible to predict the market that accurately. Besides, the market always hits a temporary bottom/top before continuing the larger trend. The second option is to wait for consolidation to take place and then enter the market at the upper resistance of consolidation pattern and target the range lows. I favour the second technique since you are opening your position in the direction of the trend and is more likely to succeed.
The best part of this business is that there are plenty of opportunities to make money and the challenge for us is to be around long enough to take advantage of these opportunities when they arise. Good luck to all and remember winners are those people who constantly learn from their mistakes and constantly strive for success even in the direst of times.Ignored
Have a good weekend all,
Ed
Up or down, gimme a ticket
