How do pips work? Each pip is 10$ or what? how much is a contract? I know nothing about forex but I like its liquidity.
I noticed you exited the trade for a 23 pip profit after being in the trade for over 8hrs however during the 5pm roll you stated that you had moved your stop to 30 pips. Why would you risk 30 pips to make 23? Maybe it’s easier understood for those that don’t know how FX pips work to ask the question this way. Why would you risk $300 to make $230?
One reason people do this is because they will probably hit their PT before SL. So really no risk at all in that sense. High probability = high risk
obviously one would have to have a higher winning percentage in order to be profitable because this method is risking more money than it is making. That’s why I asked TradeX the question so he could explain.
Win percentage has nothing to do with probability. You can make money and have a 40% win percentage. He is risking more money because his profit target will, more than likely, get hit before his SL. When one is worried about a deep PB they will do this depending on where they are at in the market cycle.
Hi, The original 18 pip stop is of course re-instated around 6:30 PM, one hour and a half after the rollover.
You can get more info here for instance: https://www.investopedia.com/ask/answers/06/pipexplained.asp
Ok, so where were we? First the trading results for last week: Long GBP/CAD at 1.7220, 27 pip stop : Break-even Long AUD/JPY at 75.97, 26 pip stop: 26 pip loss Long AUD/USD at 0.7160, 18 pip stop: +23 Total for week ending Friday October 9, 2020: -3 pips. (Only 3 trades that week, I had a few personal issues to deal with). Alright, let's get busy now.
And remember fellow Forex traders, we are the ULTIMATE traders. While others trade stocks or soybeans, we, on the other hand, trade freaking money itself!