Forex

it says

If the NZD strengthens to .6175 then sell it (vs USD) (you sell NZD becasue you expect it to weaken from there). (Technically you exchanged NZD for USD at that price). Theoretically you need NZD now to weaken and USD to strengthen, because you have to exchange the USD back to NZD to close the transaction.

Stop .6210: This means you must cover for your wickets if your assumption was wrong by exchanging the USD back to NZD at this point. It is a loss (STOP = short for "stop further losses") because NZD has actually strengthened. When you do the exchage at this price you get less back than you exchanged in the first place.

Target 0.6025: This is where you will do the exhange and make money if things go right. You will reverse the initial transaction, exchange the USD you temporarily held again for NZD.

Protect 50 pips profit once price hits .6105: This is rference to so-called trialing stop. If the price gets to .6105 you have 70 pips profit. Protect fifty by placing a trailing stop of 20 pips.

It doesn't count how many people tout this type of trading as the success formula. It is easy to tout and explain with many examples. This way of trading certain markets (including forex) in a simplistic manner like most beginners will start (because they don't know better) is fundamentally flawed.

My advice is the following: This is an exact example of how most losers trade. It is a total fallacy that losers don't use proper "money management" techniques, like stops, trailing stops and risk reward ratios. They do. And they still lose.

Following signals of any sorts is the worst idea you can have if yu want to learn to trade.

"Own your own brain" - Yiddish syaing