I have decided to focus my attention about the AUD/USD. While I study Technical Analysis I will trade with largely fundamentals. At this point my trading plan is being developed by me so I am just testing the waters and seeing I proceed.
Trade Buy AUD/USD
Timing: 13/04/06 1:47 GMT
Price: 0.7293
Stop reduction: 0.7270
Take Profit: 0.7315
Number of Lots: 4
Profit loss per pip: USD $40
Max potential loss: USD $920
Max Possible Profit: USD $880
I presume I Have to take a serious look at my risk reward ratio. The main reason that my baldness is greater then my potential profit is I really don't won't my position to get stopped out by market volatility.
I spent four lots as I'm really convinced that AUD will appreciate given high commodity prices along with the widespread thought among analysts of a 25 basis point interest rate hike next time the book bank meets. I believe the dollar is under priced. Investing four lots was excessive given I just possess USD in my demo account.