Almost everyone new to Forex has a good or bad entry strategy. But none of them have an exit strategy and that’s exactly what is essential to avoid losses.
Most of the best forex trading tips are not about following any buy-sell strategy. Forex strategies are common-sense strategies that beginners who forex are often alleged to have developed by so-called forex experts, follow and ignore the methods described as en the best way to make money from forex ”.
It’s like using the same weight loss pill or trying to lose weight by following complex diets invented by people who call themselves “diet experts”. It will sound very simple, but to lose weight, you can actually do two things: first, not to overdo it at dinner, and second, to exercise more. To lose 20 pounds by eating only a few and doing a lot of exercise is of course a difficult task, but that is another issue. The point is that everyone knows the best of everything, and the problem is to make these “the best zaten.
All over the internet garant Winning guaranteed forex strategy! If you use this method in a short time you can make very strange amounts of money! ”He described the so-called forex tactics are full. However, most of these “strategies anlat do not tell about forex entry and exit from forex.
Lowering in Turkey and forex trading leverage ratio of 10 to 50 thousand Turkish Lira things that cause this is a lower limit to be brought in essence. But the main thing is to know the output, not the input.
One of the most important rules to follow in Forex trading is always to have an exit strategy. This is necessary, whether in the stock market, futures markets or forex.
Let’s talk honestly. Is there anything worse than seeing a winning stock that has lost all its profits because it has been on the market for so long? What do you say a stock you sell because there is a losing stock, starts to rise immediately after you sell it? Many stock traders sell winning shares and retain lost shares, but the opposite is actually the case.
A robust exit strategy protects you against these odds. Determine when to withdraw from the market before opening your position and maintain this exit point after entering the market. This can be a price target or a trailing stop order, as long as you have set it before entering the market.
First Example: Instruction to Set a Profit Goal and Stop Loss
Let’s say that after reviewing the basics and USD / CAD forex charts, you’ve decided to sell the USD / CAD short.
Your sales figure is USD / CAD ratio 1.0132. You have set 1.0220 as your stop-loss limit: that is, when the currency pair you choose reaches this number, the buy-sell will close.
Forex Exit Strategy
By measuring the previous movements of the currency pair, you have inferred that if the downturn continues, the price will fall by approximately 200 pips until monitoring starts again. That’s why you set your profit target to 0.9940.
Example 2: Trailing Stop
We’ll go through the same situation, but this time, we’ll make it look like you’ve ordered a stop loss and a trailing stop instead of a target profit. This stop order (in case of a missing position such as here) is a percentage set above the market price. The trail stop order is readjusted as the market fluctuates. Since there is no fixed profit target, your position will remain open as the market goes in your favor, and you will leave it when the market turns against you.
It is not that difficult to determine an exit strategy when opening a new position. There is a simple question to ask before opening a position; When should I finish the purchase? For when you open a position for yourself, the profit or loss that you will do will sow in your judgment.
If you’re a beginner in the forex business, you’ll need to learn all the habits of successful forex traders. One of the most important of these habits is to determine an exit strategy for each forex position you open.