For today forex faq, I will be answering 2 questions at the same time as I find that one question per post is too slow and I have subscribers asking me for the answer ASAP.
Below are the questions for today.
I am a new person in forex, can you please tell me the best indicator to use as a beginner so as to avert lost of money during trading. Please respond to this question as soon as possible.
For more information about these 2 indicators, you can take a look at the past post that I have written.
Although these 2 indicators are very useful, it does not have the ability to prevent you from lost of money. You need to understand that losing money is part of this trade. It is impossible to win all the time.
However if you really know how to make use of these 2 indicators, you will be able to greatly reduce those losing trade by skipping them.
Here is another question
For intraday trading, how do you know when there is sufficient volume in order to place a trade without the risk of the big volume coming in and whipping you up or down to the stop?
The big volume usually comes at the London Open session and the New York Open when the traders of these 2 countries start work and look for entry.
However, I do not think that they are the cause of those whipsaw movement that stop you out. If you are right in your analysis, most of the time you will profit from their entry as they cause the market to move quickly in your favour.
Those whipsaw movement that you are talking about should be those that comes from news release. I know of some traders who usually exit their position before a major news like the non-farm payroll is being released.
The major news release usually triggers very long candlestick formation and stop out a lot of position. Therefore if you do not want that to happen, try to avoid taking position before that important news release.