Lesson # 6 in Forex Trading

Last night, I placed a sell of the EUR/USD around 1.5460. During the evening hours, it was trading sideways. At one point, I was up $10.00 (only bought 1 lot). I thought, take the profit. I wound up making only $6.70. But when I woke up this morning the market had moved against my sell trade. If I hadn’t sold, I would have lost again.

This morning, I placed a buy around 1.5500 and raised my stop to 100 pips. As of right now, it’s moved the opposite way and is around 1.5425. If I had stuck with my rules of 50 pips, I would have lost another $50.00. I think 50 pips is much to tight  dealing with the EUR/USD.