The paper presented covers one of the most important (in author’s opinion) aspects of the trade in general and Forex trading in particular – will result in orders and positions. This includes choosing entry points, making decisions about exit points, stop loss and take profit of the trader. Hopefully this article will help new entrants, which only began to work on Forex, and experienced traders also trade regular, periodic or lose money in the market.
When I started trading Forex and making the first big losses and profits I began to notice a very important issue for the entire negotiation process. Although the right time to enter the station rarely a problem for me (almost 80% of all my open positions had gone “green” profit zone), the problem is hidden in the determination of the right exit for that position. Not only was it important for me to reduce the risk of loss with stop-loss orders, but to limit my greed and make a profit when I can take and that is as large as possible. There are many known guidelines and ways to give the correct position at the right time – like major economic releases in the world global events, combinations of technical indicators, etc, but when the starting position is optional and trade can decide to leave many input time good / bad time they want, this is not true, if we talk about an interesting role. Margin trading makes it impossible to wait too long to open. More than one open position on the ability of a certain way limits trader to trade.
Choosing the good exit points for positions could be easy, if only the Forex market has been so chaotic and unstable. I think (the back of my trading experience) exit orders for every position must be changed constantly over time and new market data (technical and fundamental) appear.
Let’s say you took a short position in EUR / USD is 1.2563, after taking the role of level of support / resistance is 1.2500/1.2620. You can set your stop-loss order to 1.2625 and 1.2505 Take-PROFIT. So now, this position may be considered as intra-day or 2-3 days term position. This means you must stop before it is “long term” is over, or will be a very unpredictable (because the market is very different than it was when he entered this position). When a position is taken and initial exit orders will need to monitor market developments and technical indicators to modify the order to leave. The most important rule is to increase the limit of the loss / gain over time. Usually, if I take a position in the medium term (2-4 days) to try to lower the goal of halting and Order 10-25 points every day. I also follow world events, trying to lower my stop-losses when very important news can affect my position. If the benefit is already quite high, I’m trying to move my stop-loss the entry point, so be sure-win position. The idea is to find the balance between greed and caution. But his position is greater the benefit should be limited and reduce losses. Also, the trader should always remember that when the market began to act unexpectedly, to be even more cautious with exit order, even if the drive continues to show a profit.
Each investor has their own trading strategy and habits. I hope this article reminds readers an important part of trading orders to leave, and this is just to improve their net income.