Ex 3: Profitable sell trade.
look at the above prices, lets assume that the USD is going to be stronger within another 3 hrs cause of a major news. then you will buy the USD (meaning you will sell the pair) definitely at 1.3293 price, well things happened and the time is running.............after another 20 hrs the price runs to 1.3193.
, well now you got a profit of 100 pips (1.3293-1.3193), 100$ in cash if you invest 1$ per pip.
NOTE: Always keep in mind, if you want to buy the USD then you have to SELL the pair.
from other side if you want to buy the EUR then you have to BUY the pair.
Ex 4: Loosing sell trade.
look at the above prices, lets assume that the USD is going to be stronger within another 3 hrs cause of a major news. then you will buy the USD (meaning you will sell the pair) definitely at 1.3293 price, well things happened and the time is running.............after another 20 hrs the price runs to 1.3393.
ok now you got the idea and now you can describe me well about the above trade.
you lost 100 pips and you lost 100$ (if you invest 1$ per pip).ok now you have the basic trading point. and you know how to make sell/buy orders.in our next lesson we are discussing about trading entries (before you jump have to think twice).
