Today I placed double entry orders on either side expecting a sideways market. A breakout to either direction will trigger a long or short trade.
- Double entry orders long and short
The markets are still in upheaval after the US credit rating downgrade. The economic calendar shows medium impact news for Canada being released on Thurday the 11th.
The major risk here is a large bounce between entry orders. That would have me stopped out at a loss for both orders. However, I did put my orders out of the range of medium volatility. I only want the order triggered if there is a clear movement long or short.
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As always I will keep you updated with how the trade goes in the comments.
Happy Trading!
Sell order was finally triggered at 3:15pm EST. Was stopped out about 30 minutes later at a 71 pip gain! Drinks on me! lol
hi miss.. so trying to understand this whole pip thing
i went to investopedia and from what I gather it’s a 0.0001 increase correct? So 71 pip would mean 0.0071 x # trades = total gain, right?
Correct, but not multiplied by the number of trades but by the cash amount of the trade. So with a 71 pip gain on 1000 dollars, that’s .0071 times 1000, or $7.10
ah got it, thanks
so I assume without substantial money involved or low trade costs, it’s a capital intensive game.
Not exactly. Because you are using leverage you can control a huge cash position with a little bit of money. For example, most forex brokers will allow you to trade 1000 dollars with of currency for only a 30 dollar good faith deposit. Then you will want to add a little more cash to your account to be prepared for potential losses. You could get started with as little as 100 bucks.