Forex has great trends, good volatility, unbeatable liquidity and fills at the price you see.
It also demands that you use money management (really low margin requirements that can get you in the muddy end very quickly) and can move very far very quickly.
A quick example. I always put a stop in place when I open the trade order (not after but when). I move my stops in line with the trade. On Friday I was short $/Yen and 30 pips in the money. I had just moved the stop to lock in 15 pips when it moved 60 pips against me in a flash. Without the stop I would have been in trouble and because I had moved it as the trade developed I got out in profit.
The above was intended as a warning to beginners. Cut your teeth on something else
Putting a limit order either side of a sideways market works well when big news is due. I had to go out on Friday so did not put any on but did get the G7 reaction last time and will be watching the diary for other opportunities. You have to have a good knowledge of the pair you intend to trade and how it will react. It comes down to how far the orders should be from the market to enter, how far the limits should be to capture some of the move and size of stops.
On Friday on trading the EUr I decided to trade the release of the US job data, however it was very risky as previously due to the uncertainty / volitility of the currency even bad results strengthened the greenback.
Placed a long following the daily trendline that had developed and placed tight stops....data released I am up 100 pips in a matter of a few seconds. Luckily with pfxtrade (an IB of oanda) u are able to modify stops levels from the charts with ease, so i locked in on 90, cureency retraced and took out the stop before continuing up, anyway that was me for the day. Bottomline, its important to have a good plan in place as the mkt could have easily gone either way.