Stop-loss discipline

As you can see from the description above, there are significant opportunities and risks in foreign exchange markets. Aggressive traders might experience profit/loss swings of 20-30% daily. This calls for strict stop-loss policies in positions that are moving against you.

 

Luckily, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out. Of course, the market can move very fast and a stop-loss order is by no means a guarantee of getting out at the desired level.

 

But the main risk is really an event over the weekend, where all markets are closed. This happens from time to time as many important political events, such as G7 meetings, are normally scheduled for weekends.

 

But for speculative trading, we would always recommend the placement of protective stop-losses. With Global Trade Station you can easily place and change such orders while watching development graphically on your computer screen - which we believe is a unique feature in on-line trading today.

Title: Stop Loss Discipline in Forex
Description: As you can see from the description above, there are significant opportunities and risks in foreign exchange markets. Aggressive traders might experience profit/loss swings of 20-30% daily. This calls for strict stop-loss policies in positions that are mo
Viewed: 140
Added: 22 December 2009
Added by: hatem1971

Rate:

Fundamental Versus Technical Analysis
While technical analysis concentrates on the study of market action, fundamental analysis focuses on the economic forces which cause prices to move higher, or lower, or stay the same. The fundamental approach examines all of the relevant factors affecting

Make Money with Currency Trading
For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began

Pairs and Pips in Forex
Pairs and Pips: each currency exists in the marketplace not on its own, but as a “cross” between itself and another currency. This is practical, since when you travel to Europe you want to exchange your money for Euros.

A Beginner’s Guide to FOREX
FOREX is the abbreviation for the Foreign Exchange market. FOREX is basically an international exchange market where currencies from all over the world are bought and sold for profit.

Forex Trading Exposures
Foreign exchange is essentially about exchanging one currency for another. The complexity arises from three factors. Firstly what is the foreign exchange exposure, secondly what will be the rate of exchange, and thirdly when does the actual exchange occur