ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Target:50-100 pips a dayTrade Duration:Within a dayCharts:M15, H1 and H4
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Target:50-150 pips a dayTrade Duration:Less than a weekCharts:H1 and H4
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Target:50-100 pips a dayTrade Duration:Less than a weekCharts:M15, H1 and H4
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Target:50-100 pips a dayTrade Duration:weeks to monthsCharts:M15, H1 and H4
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Detailed explanation-1: -You can do this by placing a stop-loss order 5-10 pips above the high or below the low. If the candlestick is short, this might bring you too close to your entry price-in this case, you can place it 15-20 pips above or below. Set your profit target to 50 pips.
Detailed explanation-2: -On GBP/USD a pip is the fourth decimal place, 0.0001. So, if you enter long at 1.6400 and the rate of GBP/USD moves up to 1.6450, you have made 50 pips, or 0.0050.
Detailed explanation-3: -30-pips-a-day is a trading strategy used with the volatile currency pairs like GBP/JPY. That is because this approach requires a wide space for trading maneuvers to obtain the required profit margin. Also, volatile currencies often provide clearer market reversal points. The timeframe used in this approach is 5 min.
Detailed explanation-4: -However, most experts agree that between 1 to 10 pips per day is a reasonable goal for most traders. As for trading 0.05 lots per every 100 dollars capital, this is generally considered to be a safe amount. This is because it allows for proper risk management while still providing a good opportunity for profit.