British Prime Minister Theresa May signed a letter for the start of Article 50 proceeding leading to Brexit.
This news caused GBP/USD to fall more than 200 pips then it stopped.
Currency pairs react a lot to news in the market. If you are a currency trader, you should watch the news daily.
Read this post in which I explain in detail GBP/USD short trade with 200 pip profit and 15 pip stop loss.
The key lies in keeping the risk low. If you can catch big moves with a low risk you can make a lot of pips.
I used to trade with a stop loss of 50 pips a few years ago.
Now I only open a trade with a stop loss of 15 pips most of the time. Even 20 pips is big risk for me.
Another important rule that I follow is if I lose a trade I don't open another trade that day.
Each time I open a trade I am looking for a 100-200 pips move.
