Currency Trading Information Channel |
|
|
|
Trade Exit - How To Cut Losses And Let Profits RunCut your losses short and let your profits run. This is the essence of your trade exit rules. Cutting losses short A protective stop protects your trading capital, it is your initial trade risk. Before a trade is even entered your should know where your protective stop will be - this is your maximum loss (barring any slippage on the exit). There are many different ways to determine a protective stop on a trade: Set dollar amount - Say $500 on every trade Percentage retracement - Say 10% from the entry price Volatility - A percentage of the average true range of the previous x bars Moving Averages - the opposite of the moving average entry Channel breakouts - the opposite of the channel breakout entry Based on areas of support and resistance stops Time - If a position is not in profit after a certain length of time then it is exited. Letting profits run An effective exit technique is also required to allow a successful trade to make the most profit possible and give back the least amount of it. Usually a trailing stop is employed to achieve this objective. A trailing stop moves to lock in profits as the trade moves in the traders favour, it should never be moved backwards. There are many different ways to calculate a trailing stop: Volatility - the stop is calculated as a percentage of the average true range of x periods. Dollar - A set amount determined before the trade is entered. channel breakout - exit a long position at the low of the last x bars. moving average chart patterns - ie move the trailing stop behind each consolidation as it forms. Other forms of exit are: Time Stops - A trade is exited after a certain length of time no mater what. A day trader, for example, will always exit at the market close. Targets - A limit order is placed to exit a position at a pre-defined profit objective. However this tends to break the rule of letting profits run and usually reduces the profitability of a system by cutting short the best trades. Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system, the results of which are updated daily on the site.
MORE RESOURCES updated Sat. July / 27 / 2024 ThinkMarkets Teams Up with TradingView to Bring Trading to Desktops Finance Magnates Kickstart the FX trading day for July 26 w/a technical look at the EURUSD, USDJPY & GBPUSD ForexLive Russia Considers Allowing Digital Currency Trading on the Country's Largest Exchanges Bitcoin.com News Stock market today: A widespread rally on Wall Street sends stocks rising, both big and small WIAT - CBS42.com 15 Banks and Credit Unions That Exchange Foreign Currencies Business Insider Stock market today: Asian shares dive after a wipeout on Wall Street as Big Tech skids Beaumont Enterprise Don't Fall for Forex Trading Scams U.S News & World Report Money Stock market today: Asian shares mostly advance after Wall St comeback from worst loss since 2022 The Ridgefield Press Stock market today: Global shares tumble after a wipeout on Wall Street as Big Tech retreats Yakima Herald-Republic Euro Forecast: EUR/USD Digests Data, Core PCE on Tap FOREX.com US Stock market today: Asian stocks fall after a torrent of profit reports leaves Wall Street mixed The Hill USD/JPY Slammed: Is the JPY Carry Trade Dying? FOREX.com US A Decade of Major Foreign Exchange Returns Visual Capitalist What Is Forex Trading? Forbes Senior G10 trader Agaisse leaves Barclays FX Markets USD/JPY, EURUSD Forecast: Two trades to watch FOREX.com US Stock market today: Global shares tumble after a wipeout on Wall Street as Big Tech retreats Post Register Stock market today: Wall Street slightly lower as airlines post earnings ahead of latest GDP report Idaho State Journal The Most Famous Forex Traders Ever Investopedia Towards Increasing Complexity: The Evolution of the FX Market Liberty Street Economics - FOREX.com vs. Robinhood: Which Broker Is Right for You? The Motley Fool Stock market today: Wall Street opens mixed as Big Tech steadies itself - Traverse City Record Eagle Stock market today: Wall Street opens mixed as Big Tech steadies itself Traverse City Record Eagle Learn About Trading Forex With Binary Options Investopedia Best Forex Brokers In May 2024 Bankrate.com Futures Markets Charles Schwab Speech: Geopolitics and its Impact on Global Trade and the Dollar International Monetary Fund EUR/USD Forecast: Forex Friday - July 19, 2024 FOREX.com US Forex Day Trading: 5 Mistakes to Avoid Investopedia Why Trade Futures Through Schwab Charles Schwab Foreign exchange contact group (FXCG) European Central Bank GBP/USD Signal Today - 24/07: Rally Intact Despite Pullback DailyForex.com U.S. dollar closes lower on Taipei forex market Focus Taiwan GBP/AUD stretched and nearing known reversal area FOREX.com US Traders pour billions of dollars into Turkish lira trade Financial Times USD/PKR Analysis Today - 25/07: Speculative Range (Chart) DailyForex.com Rupee ends little changed after touching record low; budget in focus Yahoo Singapore News Best forex trading app of 2024 TechRadar USD/CAD Forecast Today 26/7: Extends into Resistance (Chart) DailyForex.com US dollar climbs amid risk-off market mood TorFX News
|