We have already noticed in first the main guide the way the forex market works and what are the basic principles of trading Forex.
Among the many Forex trading strategies for beginners, we have to consider also the information of some tools that allow traders to minimize losses and to act with less pressure.
There are some useful tools that will help you protect your investments from sudden and unexpected losses. These instruments are called STOP LOSS and TAKE-PROFIT.
Each time a position is open, you can decide to close it at any time of the afternoon (excluding holidays). In order to avoid significant losses in situations where you can't have continuous control of the specific situation, you can establish a point of automatic STOP (stop-loss) after which it the deal is automatically closed.
The trade management means of "stop loss” is a basic skill to be included in the definition of each forex trading strategies.
The stop loss can be used every time you are confronted with the chance that the exchange rate moves in the opposite direction than you expected, bringing the positioning to accrue a loss that over time will grow without limit.
Placing the stop loss methods to pick a lower price range (if you enter long) or higher (if you enter short) to the achievement of that the transaction closes automatically, allowing not to reduce larger levels of money.
You will likely then need to find the price range of which to put the stop loss, perhaps by measuring the distance in pips, once you open a brand new position.
The keeping the stop loss is free, having no important criterion to follow. Each trader decides what is the utmost amount to reduce and how far can wait until there's a market rebound.
Based on the trading you intend to do, the indicators which can be getting used and the earnings prospects you seek, each trader can decide to put the stop loss pretty much distant from the entry level.
TAKE PROFIT could be the tool that can be used when you wish to close a situation that's profitable. Most of these order are accustomed to set a target profit price on an extended or short position. The profit price could be set with regards to absolute price or as a percentage. There are two different orders: “take profit” (triggers a market order when market price hits the profit price) and “take profit limit” (triggers a control order when market price hits the profit price).
This order is beneficial to traders operating mainly on long-term positions since it can give him the opportunity not to be always on the PC to monitor its position.
By setting these two orders, in reality, the trade automatically closes achieving among the two levels and there's no need to stay connected to the web waiting for predefined conditions.
All the top forex brokers in Italy enable you to use these two tools.
In summary, the basic principles to learn to operate in the Forex market are simple and few to understand. We always recommend knowing first how the marketplace works before embarking large investments.
Among the many Forex trading strategies for beginners, we have to consider also the information of some tools that allow traders to minimize losses and to act with less pressure.
There are some useful tools that will help you protect your investments from sudden and unexpected losses. These instruments are called STOP LOSS and TAKE-PROFIT.
Each time a position is open, you can decide to close it at any time of the afternoon (excluding holidays). In order to avoid significant losses in situations where you can't have continuous control of the specific situation, you can establish a point of automatic STOP (stop-loss) after which it the deal is automatically closed.
The trade management means of "stop loss” is a basic skill to be included in the definition of each forex trading strategies.
The stop loss can be used every time you are confronted with the chance that the exchange rate moves in the opposite direction than you expected, bringing the positioning to accrue a loss that over time will grow without limit.
Placing the stop loss methods to pick a lower price range (if you enter long) or higher (if you enter short) to the achievement of that the transaction closes automatically, allowing not to reduce larger levels of money.
You will likely then need to find the price range of which to put the stop loss, perhaps by measuring the distance in pips, once you open a brand new position.
The keeping the stop loss is free, having no important criterion to follow. Each trader decides what is the utmost amount to reduce and how far can wait until there's a market rebound.
Based on the trading you intend to do, the indicators which can be getting used and the earnings prospects you seek, each trader can decide to put the stop loss pretty much distant from the entry level.
TAKE PROFIT could be the tool that can be used when you wish to close a situation that's profitable. Most of these order are accustomed to set a target profit price on an extended or short position. The profit price could be set with regards to absolute price or as a percentage. There are two different orders: “take profit” (triggers a market order when market price hits the profit price) and “take profit limit” (triggers a control order when market price hits the profit price).
This order is beneficial to traders operating mainly on long-term positions since it can give him the opportunity not to be always on the PC to monitor its position.
By setting these two orders, in reality, the trade automatically closes achieving among the two levels and there's no need to stay connected to the web waiting for predefined conditions.
All the top forex brokers in Italy enable you to use these two tools.
In summary, the basic principles to learn to operate in the Forex market are simple and few to understand. We always recommend knowing first how the marketplace works before embarking large investments.
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