hi, i'm a stock trader, recently trying on curr trading, been trading eur/usd, gdp/usd. Realised curr trading is quite different from stock trading, currency trend is much stronger, and sometime it has sudden move, within split sec, it goes up a lot, or goes down a lot, and suddenly u are very rich or u getting a big loss, and if u still continue holding, the loss gets bigger very quickly It seems like have to depend on luck on which dir the sudden move occur, if u are in the correct dir, good, if not u are killed. So how do you deal with this kind of situation? I hate to depend on luck, cause the move can happen suddenly, can be up or can be down, so quickly...
Money management is your only real way. Not every move can be predicted. Overall, if the big spikes are "random", then you should come out flat on them. Just make sure you have the capital backing to take the P&L volatility. If you're often on the losing end, then they aren't so random. Review your trading strategy to figure out why.