Closing positions on forex
Working on a currency exchange is important not only to find the best point of entry to the market but to close the deal in time, in order not to lose the profit already received or to prevent the increase in losses.
Therefore, any of the traders should know the basic rules of closing positions or when to withdraw from the forex market.
In general, there are not so many options for closing transactions, correctly calculate all the main parameters and adhere to them unswervingly.
1. After receiving the planned profit that is, before you open a new order, you must first calculate, at least approximately, how much profit you can get from the existing trend. This can be done by assessing the dynamism of the trend, its volatility forex on the chosen trade gap.
The best option to consolidate profit size is to set a take profit, unlike manual execution, this order will help close the deal, even if the price just touches the established level of profitability.
2. When you reach the level of losses you should not start trading without thinking, at what rate of loss, you definitely close the deal.
And this indicator should not be changed, for example, if you decide to close the deal if the loss reaches $ 50, then in no case change the conditions, namely, the refusal to close the deal, if a pre-determined loss ratio is reached, it leads to a stop out.
To overcome the psychological factor, set the stop loss and move it only towards profitability. Details about this order are written in the article “Stop Loss”.
3. By time just a fairly common option, the year of the order closes at a specific time, it can be the end of the session, the end of the day or work week.