My Trade with Murray

22 September, 2008

LEVEL EUR/USD 22 SEPTEMBER 2008

EUR/USD

EUR/USD
Buy Stop 1.4540 TP 1.4570 SL 1.4510
Sell Stop 1.4450 TP 1.4420 SL 1.4480

LEVEL USD/CHF 22 SEPTEMBER 2008

USD/CHF

USD/CHF
Buy Stop 1.1060 TP 1.1090 SL 1.1030
Sell Stop 1.0980 TP 1.0950 SL 1.1010

LEVEL GBP/JPY 22 SEPTEMBER 2008

GBP/JPY

GBP/JPY
Buy Stop 197.00 TP 197.50 SL 196.50
Sell Stop 195.00 TP 194.50 SL 195.50

16 September, 2008

Stop-loss Discipline

As you can see from the description above, there are significant opportunities and risks in foreign exchange markets. Aggressive traders might experience profit/loss swings of 20-30% daily. This calls for strict stop-loss policies in positions that are moving against you.

Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out. Of course, the market can move very fast and a stop-loss order is by no means a guarantee of getting out at the desired level.