Everyone coming to the market Forex, dreams of a stable earnings. But how to combine the desired stability in the harsh laws and foreign exchange market, traders who do not forgive even minor mistakes?
First of all, to determine what proportion of their deposit to be used for currency trading, you can afford to lose. Of course, this value is very individual for each trader and depends on its financial capacity and psychological warehouse. But the experience of previous generations of traders said that the unreasonable risk on open positions amounts in excess of 2% of the current deposit.
In early trading activities and risks at all should be reduced to 1%. That is, if you've developed trading system (TS) signal on the entrance to the market and you open a position, your maximum possible losses by control orders to limit losses under the TC, should not exceed 1-2% of the amount in the account Trader .
Why do we immediately went on the possible losses? First, because nobody, not even the most experienced trader can not avoid losses on individual positions. Secondly, the main task of the trader in the first phase of work should be defined as survival in the foreign exchange market, the ability to hold out as long as possible in this risky business.
A very important aspect in the work of the trader, allowing both to minimize losses and make money on the market, is the correct installation of stop orders and prudent management. At the entrance to the market your vehicle must clearly indicate where to place stop loss and take profit. Directions TS trader must implement clear, avoiding unreasonable improvisation.
During the bidding, in the process of continuous monitoring of a trader can make informed decisions on the movement of stop orders. If the market moves in the expected direction and had already formed some profit, but the TC continues to send signals about the constancy of direction, the trader may decide to move the stop loss order to breakeven position (at the level of open positions), and take profit order to move from current levels in attempt to capture more profit.
In the case where the vehicle gives the distinct signals a change in trend, the trader must quickly decide on fixing damages, without waiting for the exit price of a currency pair to the level of stop loss. Move the stop loss order in anticipation that the trend will change direction again, should not in any case.
Every closed position, regardless of whether it was profitable or unprofitable, the trader must be carefully analyzed, it is desirable for "hot pursuit". It was formed as necessary to any currency trader experience and accumulated data to improve the trading system.
Following these rules will certainly lead you to the stable operation at the forex market and ensure steady income.
First of all, to determine what proportion of their deposit to be used for currency trading, you can afford to lose. Of course, this value is very individual for each trader and depends on its financial capacity and psychological warehouse. But the experience of previous generations of traders said that the unreasonable risk on open positions amounts in excess of 2% of the current deposit.
In early trading activities and risks at all should be reduced to 1%. That is, if you've developed trading system (TS) signal on the entrance to the market and you open a position, your maximum possible losses by control orders to limit losses under the TC, should not exceed 1-2% of the amount in the account Trader .
Why do we immediately went on the possible losses? First, because nobody, not even the most experienced trader can not avoid losses on individual positions. Secondly, the main task of the trader in the first phase of work should be defined as survival in the foreign exchange market, the ability to hold out as long as possible in this risky business.
A very important aspect in the work of the trader, allowing both to minimize losses and make money on the market, is the correct installation of stop orders and prudent management. At the entrance to the market your vehicle must clearly indicate where to place stop loss and take profit. Directions TS trader must implement clear, avoiding unreasonable improvisation.
During the bidding, in the process of continuous monitoring of a trader can make informed decisions on the movement of stop orders. If the market moves in the expected direction and had already formed some profit, but the TC continues to send signals about the constancy of direction, the trader may decide to move the stop loss order to breakeven position (at the level of open positions), and take profit order to move from current levels in attempt to capture more profit.
In the case where the vehicle gives the distinct signals a change in trend, the trader must quickly decide on fixing damages, without waiting for the exit price of a currency pair to the level of stop loss. Move the stop loss order in anticipation that the trend will change direction again, should not in any case.
Every closed position, regardless of whether it was profitable or unprofitable, the trader must be carefully analyzed, it is desirable for "hot pursuit". It was formed as necessary to any currency trader experience and accumulated data to improve the trading system.
Following these rules will certainly lead you to the stable operation at the forex market and ensure steady income.
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