I have learnt alot from the Daily FX Team, to that I am grateful. I just went through the article on their trading lessons for 2008, and I deduced that some of the analysts do not use a stop loss. For example Ilya Spivak, who entered a Eur Usd short at 1.33 and allowed it to run till it got to 1.47 based on a fundamental opinion. Am interested to find out why he allowed it to go that far, secondly what could have happened if the bullish run had continued. Why I am interested in this aspect is that I have been whipped before entering a position on a fundamental view of the market however the market does want it wants and I end up hedging the position and trying to minimise my losses. Eager to hear from the masters.

Hello Okehiedon.

You pose a great question. I have outlined my reasoning for staying in the EURUSD trade in the "Top Forex Trades for 2009" report which you can find here:

http://www.dailyfx.com/story/tophead...714797330.html

Beyond the long-term fundamental picture, my initial short position at 1.55 (which I describe in the trading lessons that you are referring to) gave me a good bit profit to buffer loses on the amount added at 1.33, allowing me to wait for confirmation that the upswing was corrective rather than trend-changing.

Hope that helps


Ilya

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Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.