Today was a bad day. Lost 76 pips on buying the EUR/USD. The lesson learned here is that you need to know how market data affects the forex market. I could have cut my loses at a limit of 30 pips but i held on till i realized that the markets are holding on. The Federal reserve will be meeting and there are indications that they will pause cutting interest rates and this should rebound the dollar against major currencies. Right now the EUR/USD is 1.5565 the lowest i have seen since December 2007.
Lessons: Follow market data and economic forecasts. Always set limits; 30-40 pips. I mean in 3 hours i had lost 80 pips.
Predictions: If the Fed Reserve indicates they are willing to further cut down interest rates which i think they will then am willing to put in a buy order. Lets wait and see what happens but its so easy to lose 40 pips in a heart beat. This is not for the faint hearted.
