2015-10-05_17-55-30eurusd forex.today

Sometimes the worst mistake a trader can make is to long and short the same currency as price moves sideways or in a range.

Therefore I really advice every trader to have a bias. It can be a technical one or a fundamental one.

But the trader needs to have a reason to enter a trade and avoid loosing precious pips when there is no trend.

A very simple thing to understand is to follow the 200 moving average which is our trend moving average.

I use MACD as a help to get me into the trades. As you can see on the chart you would have had two trades for today.

If you would have also tried to be long you would have had a loosing day due to the spread.

Please remeber that this is not even a zero sum game because you need to pay the spread when you buy or sell a currency so you always start in negative territory.

Sticking to a plan might be difficult to do but avoids draw downs in your account.

BEST OF PIPS

 

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