I have decided to focus my attention on the AUD/USD. While I research Technical Analysis I will trade using mainly fundamentals. At this stage I am developing my trading plan so I am just testing the waters and seeing how I go.
Trade Buy AUD/USD
Time: 13/04/06 1:47 GMT
Price: 0.7293
Stop Loss: 0.7270
Take Profit: 0.7315
Number of Lots: 4
Profit loss per pip: USD $40
Max potential loss: USD $920
Max Potential Gain: USD $880
I think that I have to take a serious look at my risk reward ratio. The reason that my stop loss is greater then my potential profit is that I don’t won’t my position to get stopped out by market volatility.
I invested four lots as I am very confident that AUD will appreciate given high commodity prices and the widespread thought among analysts of a 25 basis point interest rate hike next time the reserve bank meets. I think the dollar is under priced. Investing four lots was probably excessive given I only have USD $5000 in my demo account.
Trade Buy AUD/USD
Time: 13/04/06 1:47 GMT
Price: 0.7293
Stop Loss: 0.7270
Take Profit: 0.7315
Number of Lots: 4
Profit loss per pip: USD $40
Max potential loss: USD $920
Max Potential Gain: USD $880
I think that I have to take a serious look at my risk reward ratio. The reason that my stop loss is greater then my potential profit is that I don’t won’t my position to get stopped out by market volatility.
I invested four lots as I am very confident that AUD will appreciate given high commodity prices and the widespread thought among analysts of a 25 basis point interest rate hike next time the reserve bank meets. I think the dollar is under priced. Investing four lots was probably excessive given I only have USD $5000 in my demo account.
"a fool and their money will easily part"