DislikedGood advice indeed, and following it is wise. However, another pitfall many make is overinvesting in the trend. You can't just dump the majority of your equity into 1 currency and expect not to take a loss sooner or later that kills your account. If you use leverage (100:1 or 200:1), remember your using 100-200 times your money. Any change in position is multiplied by that much. Follow the trend indeed but make sure your position can take a 300-400 point swing to the bad before returning back on the overall trend. Otherwise, your analysis may be valid, but your position can't handle the natural ups/downs within the trend.
My two cents worth
GirlFlyerIgnored
"300-400 point swing to the bad" !!!!!!!!!
GirlFlyer,
you must have a whole lot more money than me.... because I wouldn't hold a losing position like that.
50 pips in the Euro is enough to tell me that I am wwwwwrong.
Besides, there are better ways of minimising damages caused by stop-losses.
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