If you are a scalper it’s a simple answer: you shouldn’t hold the trade. The forex market is 24/5 – you can’t exit your trade over the weekend so you have to hold the trade until the market re-opens. Scalpers don’t stay in trades for very long so you definitely don’t want to hold over a blogger.comted Reading Time: 8 mins 12/10/ · Exiting a forex trade via stop-loss orders: A stop-loss order is a kind of command which instructs your broker to close your position when the unit touches a specific price or when an amount of losses is reached. Stop-losses are always above current To close a position manually, one has to execute the opened position context menu command of the "Terminal – Trade" window or double-click with the left mouse button on this position.. If trade operations for a certain symbol are executed on request, one has first to receive quotes by pressing of the "Request" blogger.com activates the button that allows to close position
How to Know When to Close a Trade
One of the hardest decisions you will have to make while trading Forex is when to quit a losing trade. Do not think you are going to get out of this by having a perfect system; while the best thing to do is obviously to avoid losing trades in the first place, even with a really, really great system, it is going to happen. Not only that, but a lot of Forex traders struggle to figure out if they are in a losing trade at all, particularly traders whose systems often take them out of their way on retracements before getting back on track.
When price is going against you in a backtestit is easier to make trading decisions than it is in real life. You have less time to think about the situation since you are not waiting on the bars to form, and you often get into a pattern of actions which at the time seems very clear and simple.
In real time, though, as the minutes, hours or days drag by, you have a lot of time to second guess yourself. What would have seemed clear in a backtest suddenly seems like a muddle.
It is going to turn around if I just wait. Or maybe it will not. Maybe I will just lose more and more money until I hit my stop. Maybe my stops are too close; if I just push out my stop a bit then price will turn around. This is probably a retracement, but I do not want to sit around to find out, so I am going to get out early. Some of these thoughts err on the side of caution while others err on the side of excess.
If you are used to having price retrace on you and then go on to win, you may want to consider just looking for the retracements as part of your setup in the first place, and entering after retracements complete. This can save you from getting faked out in either direction. Generally speaking, though, there is a really good, simple rule for figuring when is a good position to close your forex trade you are in a genuine losing trade or whether your trade might still make sense.
If the reasons you originally took the trade no longer exist, you should probably get out and cut your losses. If you would not enter the trade with things as they are, then it is not an intelligent position to be in. Do not sit there waiting for price to turn around on you — there is no reason to think it will. At that point you are gambling and you are in the wrong mindset anyway, so get out of the trade, when is a good position to close your forex trade.
If however the reasons you took the trade seem to be intact, you may just be in a retracement, especially if new signals have formed in the direction of your trade since you entered it. In this case, it may be a good idea to stay in. Try to make the decision you would have made when backtesting. If you were not double guessing yourself, what decision would you make? Hopefully these tips will help you to cut your losses in Forex without cutting yourself out of winning trades!
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FOREX - WHEN TO ENTER AND EXIT A TRADE - 90% ACCURATE - FOREX TRADING 2021
, time: 20:34An Expert Guide on Entering And Exiting An FX Trade in
Forex trading bears intrinsic risks of loss. You must understand that Forex trading, while potentially profitable, can make you lose your money. Never trade with the money that you cannot afford to lose! Trading with leverage can wipe your account even faster. CFDs are leveraged products and as such loses may be more than the initial invested capital. Trading in CFDs carry a high level of risk thus 12/10/ · Exiting a forex trade via stop-loss orders: A stop-loss order is a kind of command which instructs your broker to close your position when the unit touches a specific price or when an amount of losses is reached. Stop-losses are always above current 26/09/ · Keep your stop slightly below the previous day’s low and let the trade run until the market closes your trade for you. Alternatively, simply set your stop to track the 8 day EMA – this will Estimated Reading Time: 4 mins
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