I have been reading a lot on basic forex trading, etc, however I still have two questions that I was hoping I could get answered:
1) Trading length - I want to trade over a period of a few days to a week, however the market moves in excess of 100 pips per day on average (or so it seems from charts). How do I set a stop loss effectively and not get kicked out in one day?
2) I still don't *really* understand how leverage works, and why less is more effective than more. Is it because less leverage means more ability to preserve capital and thus longer in the market, where as more leverage means higher chance to make profit but also easier to lose it all?
Thanks guys!
EDIT: For #2 I put margin instead of leverage. My bad!
1) Trading length - I want to trade over a period of a few days to a week, however the market moves in excess of 100 pips per day on average (or so it seems from charts). How do I set a stop loss effectively and not get kicked out in one day?
2) I still don't *really* understand how leverage works, and why less is more effective than more. Is it because less leverage means more ability to preserve capital and thus longer in the market, where as more leverage means higher chance to make profit but also easier to lose it all?
Thanks guys!
EDIT: For #2 I put margin instead of leverage. My bad!