by shaunna75 » 08 Feb 2011, 02:47
There would be a chance that you lose in Forex trading but what is important is how you would handle that loss. It is easier to manage losses on a 5 min time frame because a trader is able to monitor charts all the time and the losses are usually small due to the nature of 5 minute trading: price ranges are smaller and it is easy to tell when the market starts turning against your position. Hourly charts on the other hand have wider price ranges and therefore require wider stops to be placed and larger losses to be taken. So it is best to fix the loss as soon as you notice the chart dropping.
