This is still a good trade – for those of you who entered the trade when I did, after the breakout at the 88 level, then you could be sitting with potential profis of 1000 pips. Not bad for a few weeks work. One question I get asked many times is why I never quote profits in pounds or dollars etc – the answer is very simple – I have no idea what currency you are trading in your acount, or indeed how many contracts you have entered. On the above trade, even if you had only taken a very conservative view and entered 1 contract, then you would be looking at several hundred dollars, just for a single contract. Alternatively, had you felt more bullish, you may have bought 5,10 or more contracts.
The level of risk you take is entirely up to you – even those of you who are learning to trade using mini accounts where contract size is a tenth of normal, you can still make money withou taking silly risks. I accept that a 1 pip movement and a profit of 10 cents is hardly likely to set the pulses racing, but it is a good way to learn, and not to lose all your money. And even on a long term trade like this, you could still make a 100 dollars, even from a mini account – a good and safe way to learn – that’s my view anyway. I am not a great believer in paper trading which never works as it has no emotion. Learn usiing a mini account – most Forex and FX brokers now offer them.
If you have any other questions you can always contact me via my site at www.making-bread.co.uk and I will always do my best to answer. I will be putting up a new site devoted to writing a trading plan ( how boring I hear you say ) – maybe, but essential if you are to survive – I will post the details here when it is ready. Good luck with the above trade, and it only shows that you can even make money in a mini – account!