Saturday, February 6, 2010

Exiting positions at a right time

They represent the article covers one of the most important (in author's opinion) aspects of trade generally, and especially Forex trading - account management and position. Includes the possibility of inputs, makes decisions based on the stop loss and profit entrepreneurs.
I hope this article will help new players only started working on the Forex, and experienced traders who trade frequently and regularly receive or lose money in the market.

When I started to trade Forex and made my first big losses and profits I began to notice when it is most important in the whole process of trading. 

Although the right time to enter position is rarely a problem for me (nearly 80% of all my open positions from the "green" profit zone), the problem is hidden in determining the right exit point for the post. 

Not only is it important to reduce the risk of my losses with Stop-Loss orders, but to limit their enthusiasm and use when needed and strong like me. Many well-known guidelines and ways to indicate the correct position at the right time - like major economic news releases, world events, technical indicators, combinations, etc. But even with this feature is optional and trade may decide to lose a lot of good / bad moments input love, the truth is that there is a very exciting place. Margin trading makes it impossible to wait too long in the open position. Generally the open position on the limits opportunities for businessmen to work. 

Choosing a good starting point for the position can be a simple task, if only the Forex market is not as chaotic and unstable. In my opinion (support trade my experience) exit orders for each location should believe you constantly with time and new market data (technical and fundamental) appear. 

Say you take short positions in EUR / USD at 1.2563, and deciding on the support / resistance level of 1.2500/1.2620. To set your Stop-Loss to be 1.2625 and 1.2505 to your profit. So now that the position is treated as a day or 2-3 day period position. 

This means that you must end before the "word" is completed, or is it a very unpredictable position (because the market is very different from what was then either enter in this position).After the position taken at the first exit off the order, follow the market events and technical indicators to adjust your order. The most important rule is to tighten the loss / gain limits over time. Usually if I get a place in the medium term (2-4 days) to try to stop and lower targets of 10-25 pips per day. 

I also monitor global events, trying to stop, my loss is less important when the news can hurt my position. If a lot of high income, trying to move a stop loss entry for safe-win situation.
The basic idea is to find the balance point between greed and caution. But, as his position became elderly benefit should be limited and reduced losses.

In addition, operators must always remember that, if the market suddenly began to act, they should be more cautious with exit order, even if the situation continues to show a profit.
Each player has its own trading strategy and habits. I hope that this will be your readers think about such an important aspect of trade to output, and can only improve their trading results.

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