When trading the financial markets always use a stop loss to protect your trading account capital. This is especially important when trading the Forex (Fx) markets, when there can be sudden big moves due to fundamental news announcements.
It is often said that ‘the best stop is a great entry’, meaning that as soon as you enter the market, price moves in the direction of the trade and never goes near your stop. This takes time and practice to achieve but is a laudable target to aim for.
I also remember being at an International Traders Conference a few years back and trading live with some top traders and as the novice traders inevitably asked the question ‘Where would you put your stop?’, you could see the expert’s eyes glaze over!
So to answer that novice’s question and put it to bed, here goes …… Continue reading