Ok here we go, I'm new to forex trading and planning to move to real money soon (just small money but to make it realistic). Basic money management: I start with $5000 and will not risk more than 2% in any trade. I'm explaining my thoughs for entering into the trades, please explain if something is fundamentally wrong or something that can just never be profitable, have a ball, i'm ready for crit because I basically know nothing. Also look at how I change stop loss and take profit levels. Trade 1: EUR/USD long at 1.3680 for 40,000 units with initial stoploss at 1.3657 (a support level in the upward channel) [23 pips] and take profit level to be determined later. Reason for entering the trade just following the upward trend channel on the 5min graph. Trade 2: Limit order to sell USD/JPY if it reaches 117.96 for 50000 units with initial stoploss at 118.18 [22pips] and take profit to be adjusted. The level has been supported 3 times and it it breaks I expect good downside.
Trade 3: Limit orders: AUD/USD Current: 0.8545 Whichever hits first: Buy 40,000 at 0.8551 with stop loss 0.8525 [26 pips] Sell 40,000 at 0.8463 with stop loss 0.8490 [27 pips]
Trade 1 (d) Changed stop loss to 1.3690 (min profit 10 pips) Trade 3 (a) Limit order executed and doing well, moved stop loss to 0.8553 (min profit 2 pips)
Mmm Trade 3 hit the stop loss just after i set it. The price made a big downward spike which i could only see on the 10 second graph. Is this something that happens often? Anyway profit of 2 pips on trade 3.