The way to earn profit with foreign exchange trading is to capture price movements, and the smallest increment that an exchange rate value can move in is called a pip. The market can move as much as 300 pips in one trading day, which can mean there are good trading opportunities.

When placing your trades and trying to earn your pips, it is essential to calculate your potential risk and set stop loss orders. It is also important to set a list of profit target points, and you should set your trade with a trailing stop to lock in profits.

The best trades that you can have are the ones where you can set your stop loss order above or below an established support or resistance level, so that the odds of the market moving in your favor and not touching the stop target increase.