Big news for this week!

Below are some announcements that may impact the markets this week:

News

While there was generally good US economic data this week, including GDP at 2.6% and strong jobless claims, it did not seem to translate into Wall Street.  Sentiment now seems to have shifted to Asia, especially with Chinese premier Li Keqiang indicating the Chinese government may increase stimulus measures.

Japan also had upbeat retail sales, prior to next week's rise in sales tax to 8%, the result of which will be keenly watched.

GDP figures today  in the UK came in line with expectations and currently trading at 1.6630, up 2 big figures over the last two days.  German CPI figures today came out under expectations with a (surprising) initial spike up to 1.3760 from the lows.  The likelihood is that EURUSD will revert to downtrend momentum.

Stop Losses - tips on where to set your stops

Placing your stop loss (if your strategy dictates it) is vital to your fortunes as it dictates how much money you will or will not make.

1.       Give your stop breathing space.

You do not necessarily need to use tight stops to reduce risk - in fact your stop should depend on the time frame you are using, the longer the period the further away your stop.  A stop 200 pips away may seem to be expensive, but if its in the right position then you may want to reduce your trade size.  With Hirose Micro lots you can manage your trade size more effectively.

2.       Check the chart for recent support and resistance.

Find out from other analysts where these areas are so that you can place your stop with potential better results.  Remember though, when these areas break through, price tends to move rapidly so beware of slippage.

3.       Should you use a Trailing Stop or use a fixed stop?  

Using a trailing stop allows you automatically to track your position and benefit from greater upside potential.  Again, give it room, because there is nothing better than watching profits accumulating while knowing the downside risk.  Either way it's a good discipline to take the emotion out of the 'close' order.

Happy Trading.