Question for forex dealers. When do you put a stop loss order?
Three hours ago, I sold one lot of NZD/USD and so far, and so far, I lost 50 pips. How do I know when to hold and when to fold? I absolutely hate it when I put a stop-loss oder and all of a sudden the market goes backward and would have gotten my money back had I not placed a stop loss order. Also, I remember the concept of dollar cost averaging, where the trend never stays the same, trends always change.
I need help people: How do I know when to hold and when to fold? What should I do with this NZD/USD that put me 50 pips down in the past 3 hours?
Extra tags:
- dollar cost average stop loss orders,orders that dealers use forex,Should you put a stop loss on a stck when you buy it,stop loss order question,why i hate stop loss orders
Related posts:
- Is there a way to place a stop loss order once the price reaches a certain point? (This is for Forex, but it should be similar with stocks.) This is what I would like to do: Place one market buy order with...
- forex stop and limit order? Guys, does any forex broker allow the following type of order? Suppose EUR/USD is trading at 1.4550. I think that euro might fall further before...
- Trading The Forex Withtout Using Stop Loss? How can I trade the forex market withtout using the stop loss order? Will it damaged my account if I don’t use this tool?...
- Forex limit and stop orders? Can anyone tell me if it is possible to place a limit and stop order simultaneously when entering a trade (the stop will be triggered...
- when do you use a limit order and when do you use a stop order in trading forex? I am a new student of Forex and realize both offer buy and sell options, both allow a predetermined price, I know the stop order...
Tagged with: concept • forex dealers • loss • money • NZD • nzd usd • pips • stop • stop loss • stop loss order
Filed under: Trading Forex
Earlier this morning, at 0530EST, the US consumer earnings report and spending report both came out surprisingly higher than expected. This gave strength to the USD and all XXX/USD currency pairs went down, including your NZD/USD.
Since today is the last day of the week, the last day of the month and the last day of the quarter the New York investment bankers close it up at lunchtime and head for the bar or the golf course. Your position shouldn’t do much of anything until the Asian market opens on Monday (our Sunday evening).
As far as what to do now. I would keep my eye on the world events this weekend and see if anything stirs up that will impact oil or the USD. The Iran and UK issue is tense. Any additional pressure put on China could make things tense.
I always hated going into the weekend being in a position like you are (and I did it plenty of times). Now I "invest" in Forex rather than "trade" in Forex. I teach all my clients how to make a nice, consistent return utilizing a conservative Forex hedging strategy so we don’t care if the market goes up or down we still make money. No guessing…No stressing. And it makes for a much more enjoyable weekend.
I hope things work out well for you.
May all your guesses be good ones.
Paul
STOP !
In Doubt Get Out !
Please stop trading. At least for the moment. Trading can be addictive and sometimes you just want to get it back. The line between "trading, gambling and fishing" is very blurry.
The name of the game is having a system. Thats what they all say. And its true. But to reach that stage you must have some idea of what will happen.
Forex is a very very nasty game. There are no rules and you have to create your own in a ruleless world. Becasue you can toggle from hourlies and 4 hourlies to weeklies back to dailies and trying to figure out what will happen next. The next bar. ?? From MACD to stocs, to news to candlestick to elliot etc….From yen to Euro to Aud to NZD….man ! the permutation rocks on.
In a ruless world you must create your own rule. And stick with it.
Choose just one pair !
Choose just one time frame !
Choose just 3 indicators !
Observe
Attempt to find a "logic"
Backtest
Live Test on Demo [at least 3 months]
Mini-Account
Good luck man !