pls what is the recommended amount of pips to use for SL

I would really like for someone to advise me on how soon I should enter a trade after release of favorable news on a particular currency or commodity? I would also need advice on the recommended amount of pips to use for my stop loss and take profit, I do not have much in my account though, I only have $100.

One thing I hear again and again from traders more experienced than myself is don't trade major news releases. The few that do trade them wait until 30 to 45 minutes afterwards and then only trade if they feel the market has calmed down sufficiently. I learned the hard way to avoid news releases early in my trading and I don't consider myself experienced enough yet (2+ years) to take this on.

As far as stop losses and take profits go, they will probably be ignored by your broker and you will be given whatever they decide during news events. Most brokers have a "best efforts" clause in their client agreements. This means that they will try to honour your stops, limits and take profits but during periods of high volume/volatility (ie. news) they will do so on a best effort basis. This means that your 30 pip stop loss may get filled at 40+ pips or your 40 pip take profit at 25.

Don't believe what happens in demo they almost always honour requests; I am talking about live market action.

CodeMeister is right. Let the dust settle before trading favourable news. Wait for a significant (say 1 hour) candle to close and without a big tail. Regarding stop loss, look at ATR(14) - average true range - and think about using that figure - maybe double it. If you are trading near the news you may find bars get bigger than the ATR. Make allowance for that. Make sure your reward:risk ratio is good. You definitely need to paper trade before you drop your money in. You can look back through charts to practise this. If the news release sets a counter trend direction, which it will often do, then be very wary as it is rare for one news release to change a trend.

buddy to know your SL and TP, you have to first decide many things!!


1) what kind of style? short term long term?

2) breakout or ranging or trend ?

3) Risk taking or risk averse?


no one can answer you here..

and how long or short before u trade after a news is subjective..

for example if a news come out now... it may be hours later when NY starts and them to react..

best tip? prooper money management and learn learn learn..

go explore my blog.. i have articles on such... hope it helps

www.thegeekknows.com