The best time to add positions is when price pulls back to quality levels so that we are BUYING LOW or SELLING HIGH.
Over the past few weeks, we have seen price recoil from that unbelievable rally and looking at price, it is likely to continue to 1.52! Bold call? Maybe.
No one is ever 100% correct. So let us say this call is wrong, we can still control how much we lose. Also, there are money management tools we can use to ensure we get some profits if price goes our way but not ALL THE WAY.
Entry Point: 1.3370
Stop Loss: 1.3220
Profit Target: 1.5120
Risk: 150 pips
Reward: 1750 pips (>11x Risk)
This is expected to be a long term position, taking weeks to reach the target. So, money management may be necessary. Because of the interest rates differences, you'd be paying a ROLLOVER fee for holding this long position!
Enter multiple positions with various profit targets.
Split your position into two. Set one profit target at 3:1. When the first half is closed, move the stop loss to break-even on the over half! and be risk free!