20190507 (Tue) Pound/Gold Trade Commentary
I entered a pound-dollar long and it hit my stop.
After I hit the stop, it dropped sharply, so I’m glad I escaped early.
Even if I had left it alone, it would have hit the stop for a 10-pip loss, so there’s nothing to be afraid of.
People often say the pound is scary due to high volatility, but for example, if you set your stop at 10 pips, it will only incur a 10-pip loss.
The scary thing isn’t the high volatility itself, but that you don’t decide your own losses in advance.
Even in the low-volatility USD/JPY, if you don’t decide your loss in advance and don’t control the loss, things can become scary.
However, simply aiming to keep losses to 10 pips all the time, by entering carelessly and placing a 10-pip stop, won’t lead to success, right?
Where should you enter to place an appropriately small stop?
