In the 1-minute chart of EUR/USD and GBP/USD on June 15, 2004, you will see that after the data was released, the exchange rate plummeted within 20 seconds, and then turned around and rose.
Sometimes the unpredictable reactions of individual investors cause the exchange rate to show a volatile characteristic.
This situation will trigger our entry order on one side, and then move to the other side trigger the other side’s entry order, and stop the loss of the previous one.
At this time, you wait for the profit to exceed 20 pips and then raise the stop loss position to protect the profit and compensate for the previous loss. If something bad happens next, you won’t lose again.
When we trade EUR/USD, the price’s fall and rise made us lose 10 pips, but then the other side’s order brought 20 pips of profit, so we got a total of 10 pips of profit, which can be said that 15 minutes of hard work was not wasted. If we traded GBP/USD at that time, we would have made more money.