Page 151 - Ultimate Guide to Currency Trading

your trading app on your iPad on "Audible Order Reporting." Only then do you pack up your computer,
put your iPad in its slip case, and forget about trading for the rest of day.

You go about with the usual drama of your life, fully forgetting about trading completely. You
are getting ready for work the next morning when you hear your iPad sound a chime in the next room.
At this point you have totally forgotten about your currency trading endeavors. You have been busy
running your household, going to work, etc. While you have been going through your routine, your FX
trading platform has been tracking the markets and has been waiting for the price of the GBP/USD to
reach a point in which your preset limit order can be filled. You check the message on your iPad. It
states that your order has been filled, at what price, and how many units were in the order.

Your entire long GBP/USD order has been filled. Not only has it been filled, you have
mathematically placed them at well-spaced points. You smile to yourself: You have rolled over the
gains in your currency account, and you invested in a pair that was recommended by your broker at
the price the broker liked. You're set!

Managing Expectations

In this example you have done very well. You have placed three evenly sized diversified trades that
turned a profit overnight. You closed out the three trades and booked the gains. You even walked
away from your computer for a few hours to give yourself time to cool off after an 18 percent
overnight gain. Lastly, you took a calculated risk and placed three trades in one currency pair that was
recommended by your broker. Knowing that you needed to take the rest of the week off from trading,
you have set automated take-profit points for the three long GBP/USD trades. Your mind begins to
wander toward your currency trading endeavors every evening near dinnertime. This is a good time to
check the balance in your account, as the FX market is usually very slow at this time of the day. Even
though you have set up a take profit point at L63, you know that you would be happy with a profit
sometime before the end of the week. If this were to happen, then you would close out all of your
positions and go into the week-end in 100 percent cash.

The best way to get to know how to use automated take-profit points and
automated stop losses is to practice on your demo account. The automation can
take some getting used to and it can take time to learn how to estimate the
Essential
approximate range of a currency pair. Automatic trading also takes some practice to
program it effectively!

Sadly, the week has not shown any real movement in any direction of the currency pair that
you are in. You have to make a decision at this point. The weekend is coming, and you need to decide
if you should carry the trade over the weekend, or if you should close out and go into 100 percent
cash. In this instance, you should make an effort to find out why there has been very little movement
in the GBP/USD pair. It could be that there has been very little action in the FX markets (and the