Charly's Forex Tip For Beginners: Secret Tip#1
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I see many beginners making the same mistakes over and over again.
And so I've decided to post my tips to help out the newbies here.
If you are a pro, then you have a choice to go read something else.
Anyway, my tip #1 is to always have a game plan in forex.
This means you got to have a REALISTIC stoploss and a REALISTIC takeprofit.
This means you don't leave your stoploss at 0 and takeprofit at 0.
This also means don't leave a stoploss and a takeprofit way off in the distance like 5000 to 6000 pips.
Why? Because you need to account for BAD weather days, BAD and very busy server days, and just any other really BAD days.
Take this hypothetical situation as an example.
1) You have a 1 LOTSIZE LONG ORDER on USDJPY.
2) You see the order going down and down against.
3) You have no stoploss.
4) Orderclose could not close the order because SERVER was real busy.
5) You try to close it manually but weather was bad; electricity went down.
6) By time you manage to close your order, you ALREADY got a MARGIN CALL or your balance was near 0.
7) Therefore, have a realistic gameplan with realistic stoploss and realistic takeprofit.
If something goes wrong at least you have the stoploss or the takeprofit to protect your order.
And NOTE that having 0 stoploss or 0 takeprofit does not prevent you from having drawdown or you from being "stophunted".
You will probably end up with MARGIN call. And why bother trading if you trade really small lotsize; profits are too small for all the great risks.
Don't be silly, the risk is too much.