Aren’t stop loss orders completely pointless?

May 21, 2014 at 9:41 pm

Answer by Dave Hughe:
The major part of investing and trading is money management. If you don’t mind losing all your money and even more if you trade on margin, then you don’t need stop loss orders.
On the other hand, if you want to control your risk, stop loss orders are a must.

May 17 End of week results

May 18, 2014 at 11:31 pm

The up to date results since the start of this blog are as follows:
Week 1: +231 pips
Week 2: – 19 pips
Week 3: +415 pips
Week 4: +366 pips
Week 5: +137 pips
Week 6: +150 pips
Week 7: + 20 pips
Week 8: +155 pips
Week 9: + 23 pips
Week 10: –149 pips
Week 11: +465 pips
Week 12: +126 pips
Week 13: + 50 pips
Week 14: +306 pips
Week 15: +201 pips
Week 16: + 11 pips
Week 17: +325 pips
Week 18: + 80 pips
Week 19: –133 pips
Week 20: +380 pips
Week 21: – 32 pips
Week 22: + 66 pips
Week 23: –144 pips
Week 24: +218 pips
Week 25: -109 pips

Total: +3,139 pips

Fr., May 16 End of day results +20 pips

May 16, 2014 at 3:19 pm

The GBPUSD reached its first profit target precisely but did not advance any further. We closed the remaining two units at break even. Therefore the total profit for this trade is +20 pips.

GBPUSD May16 trade

Fr., May 16 Forex signal

May 16, 2014 at 10:05 am

None of the trades were triggered yesterday. Today we went long GBPUSD, see below:

FX signal May 16

What are the best Forex trading platforms/brokers?

May 15, 2014 at 7:31 pm

The best is a vague term. What is good for one person might be completely useless for another and vice versa.

The most popular platform for retail Forex trading is MetaTrader 4 (MT4). This platform is used by the majority of brokers around the world.

The advantages of MT4 are numerous;
1) It has most common tools for technical analysis, which are very easy to use, adjust and modify.
2) Building custom indicators is pretty simple.
3) MT4 allows creating of automatic and semi-automatic trading advisors also known as trading robots. Based on the user trading system’s parameters, these advisors can either prompt the user to trade manually or just trade by themselves automatically.
4) There is also a simple-to-use built-in strategy tester, which allows testing your strategies and trading robots on historic data.

As for the broker, the one of the biggest and reputable is Oanda. Depending on where you are, you might want to use a local broker. There are other considerations for choosing a broker such as a minimum account size, allowable lot sizes, margin requirements, ease of depositing and withdrawing funds and such. Prior to committing any money, I would recommend searching the Internet on the broker you choose and especially on the comments that people have about that broker.

Wd., May 14: A lot of Pips!

May 14, 2014 at 9:51 pm

A lot of Pips! – that is the message we received today from one of our subscribers in Europe. He traded the GBP news release today the way we teach at Plain Forex Trading. Way to go!

We did not trade these news as they were released at 4:30 am EST.

None of our signals were triggered yesterday or today. Tomorrow we might trade the USD and/or CAD news releases in the morning.

What is an exchange rate?

May 13, 2014 at 6:01 pm

Answer by Dave Hughe:

An exchange rate is the value of one currency converted into another.

In an exchange rate, there are always two components: a base currency and a counter currency.

An exchange rate can be quoted directly, when the foreign currency is the base currency and the domestic currency is the counter currency and indirectly, when the domestic currency is the base currency and the foreign currency is the counter currency.

For example, a direct quotation for the US dollar in Canada would be US$1 = CAN$1.0893. In this quotation, the US dollar is the base currency and is the Canadian dollar is the counter currency.

View Answer on Quora

Mo., May 12

May 13, 2014 at 3:43 pm

We bought AUDUSD at 0.9382 with a Stoop-Loss at 0.9339. Unfortunately this trade did not go anywhere and hit the stop at night. The total loss from this trade is -129 pips.

Fr., May 9 End of Week Results: +218 pips (Total: 3,248 pips)

May 9, 2014 at 1:02 pm

The current market conditions are still very challenging. The total profit for this week is +218 pips. The up to date results since the start of this blog are as follows:
Week 1: +231 pips
Week 2: – 19 pips
Week 3: +415 pips
Week 4: +366 pips
Week 5: +137 pips
Week 6: +150 pips
Week 7: + 20 pips
Week 8: +155 pips
Week 9: + 23 pips
Week 10: –149 pips
Week 11: +465 pips
Week 12: +126 pips
Week 13: + 50 pips
Week 14: +306 pips
Week 15: +201 pips
Week 16: + 11 pips
Week 17: +325 pips
Week 18: + 80 pips
Week 19: –133 pips
Week 20: +380 pips
Week 21: – 32 pips
Week 22: + 66 pips
Week 23: –144 pips
Week 24: +218 pips

Total: +3,248 pips

Fr., May 9 End of Day Results +115 pips

May 9, 2014 at 12:54 pm

There was just one trade today, which was a news based trade in USDCAD (see the previous posts). The trade resulted in +20+37+58 = +115 pips. See the chart below:

USDCAD FX trade May9