My thoughts on the Euro on daily chart

your decision is based on a monthly bar chart, ....

what about your stoploss decision on an entry in EURUSD, i.e. 200 pips?
 
As long as a 200 pip stop loss is an acceptable % risk of the account that's fine. Number of pips is irrelevant, it's the amount of cash risked as a percentage of the account that matters.
 
"for futures that may be different", what is the meaning of "may be"

where do u c any differences ?
r u dabbling with cents ?
 
homeforex said:
As long as a 200 pip stop loss is an acceptable % risk of the account that's fine. Number of pips is irrelevant, it's the amount of cash risked as a percentage of the account that matters.
Click to expand...

That is not true - because if you are only looking for 50 pips profit then a 200 pip stoploss means you need to win 4 in 5 trades to break even.

It's the risk/reward ratio that is important - and a 200 pip stoploss means it is difficult to be profitable given typical win/lose ratios.
 
Given the way the Euro has been falling for quite some time now, 200 pips would not be all that ambitious a target surely? (if he was going for a 1:1 ratio say. As far as I can see, he has not mentioned his target in this thread. I can't get to his blog at the moment, in case it's on there).

Since he's using daily charts, I assume he is trading medium to long term.


Unless of course you believe the Euro is bottoming out, which is the $64,000 question.
 
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