How Not To Exit A Forex TradeSubmitted by admin on February 20, 2008 - 20:15. |
Too many times I have heard of new operators to open a trade using the 5 minutes chart (not my favorite ") and when the market moves against them, they spend the 15 minutes chart to justify a stay in a little more time, hoping that the market turn around.
Thus, if the market continues to move against them, they move in the schedule chart to find a reason to stay in the profession. As the market continues to go against them, namely the change everyday in table hoped to find a reason to stay in the profession. The next step is to get a margin call because they have no funds left to maintain their position.
Of course, the main problem here is that they were looking for a way to stay in a trade rather than lose close to a small loss. Taking a loss does not mean that you do not know what you're doing. Too many new operators believe that the loss of a trade which means they are losers or they are not smart enough to trade. Nothing could be farther from the truth if.
Traders professionals understand that if they trade, they will lose jobs. It's really the only guarantee in the field of speculation. How do you lose these jobs has much to do with your success as an operator as any other factor. You do not like losing, but you must accept the fact that all transactions may not be winning trades. We must keep those who lose jobs small enough to be able to catch up with the best of trades.
The passage of time to justify a stay in the trade is not how you keep your losses low. Identify your exit point before arriving in the trade and stick to it. Judge yourself every month rather than all the seeds to move in the market. Be consistent in your approach and stay within the early exchanges at the end of trade.
Tom Long is an instructor FXPowercourse.com a forex site training FXCM.com.
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