I find that to be good advice. So many times I have been stopped out of positions only to see it go in my direction after. Setting a LIMIT of +50pips to catch spikes is a good idea and STOPS should be set at -80pips or more.
IMO, no stops just leads to sloppy trading -- I almost always use a 10 pip stop. You can still catch the 200 pt moves, since usually if you time it right, the market should never look back. PS -- I hope you guys have a good reason to short here (other than it's going up), or perhaps you know something about euro/uk data coming out tomorrow morning?
wow, i admit, i am fairly new to FX--however, my experience has been very choppy severe spikes that would hit my stops everytime. i have done much better without stops--maybe its my retail broker?? these "spikes" often dont even show up on the charts..... yes, i have a good reason to be short here. averaged into 1.2015 breakeven presently. surfer
10 pip stop is OK for small retail trader but too small for doing size. Noise level by MM is more than that. Mokarimakka
Yeah, I guess that's too tight for those of you actually putting up some decent size positions (as opposed to fleas like me). I trade globex so I think it's a little more insulated from stop gunning (how much leeway do individual FX retail brokers have in their quotes anyways?). But I'd say it's not impossible to lift 100 contract offers and stay alive using a relatively tight stop, again if the timing is right.
In my opinion, there are just too many people short the EUR/USD that it has to go up. I still think that the EUR/USD is going lower long-term, but this latest move is just a small retracement to squeeze out all the small-time retail traders who are short. All my indicators are showing that the EUR/USD is oversold. I think this move has caught a lot of traders off guard since they thought for sure that we were going to retest the latest low. We probably will be not until after this retracement.