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Forex: Exiting Positions at a Right Time

This article will cover one of the most important topics (in my view) in trading with The Infinity APP Review in general and Forex in particular – control of trading positions and orders. This involves choosing points of entry and making decisions on exit points, stop loss limits and profit taking as well. I hope that this article will help new traders, who have just started Forex, also experienced traders who regularly trade and earn money in this market.

When I started Forex trading and achieved my first profit and my big losses I started to notice something important about the whole trade process. While the right time to open a trading center was one of the issues that rarely caused my problem (nearly 80% of my compatriots ended up in the “green zone” or profit zone), the real problem was to determine the right exit point for this center. It was not only about the importance of reducing the risk of potential loss using stop loss orders but also of reducing the risk by setting the level of profit taking at the highest point to be reached. There are a number of well-known guidelines and ways to identify the correct entry point and time – such as the release of important economic data, major global events, the blending of technical indicators, etc. But while entering a trading center is optional and traders can decide how they want good and bad entry points, it would be unrealistic if we did not talk about getting out of the trading center. Margin trading makes it impossible to wait long with an open trading center. Moreover, each trading center is open in a way that limits the trader’s ability to trade.

Choosing good exit points from trading positions may be an easy task if the forex market is not so chaotic and volatile. According to your opinion (depending on my trading experience), the exit orders for each trading center should be continuously confirmed as shown by the market data (technical and fundamental).

Let’s assume for example that you took a position on the EURUSD at 1.2563, and at this time we are talking, the support and resistance levels were set at 1.2500 – 1.2620 to say that you placed a stop loss at 1.2625 and take a profit at 1.2505. Thus, this center can be considered as a trading center that takes between two to five days.

This means that you have to close the trading position before the end of the trading session, or it will become difficult to predict (because the market is significantly different from the situation it was when you opened a trading center). After you have taken the trading position and the initial stop-loss limits you have identified, you should later follow the market events along with the technical indicators to adjust the exit orders.

The most important rule is to narrow the limits of loss and profit over time. Usually, if you open a medium term trading center (2 to 4 days), I try to reduce profit and loss orders between 10 and 25 pips a day. Also, I am following the global events and trying to reduce the stop loss limits when I think the next important data could harm the trading position. If the profits are already high, I am trying to move the stop loss level to the entry point to make sure that the trading order will definitely end a profit. The basic idea here is to find a balance between greed and care. However, with the aging of the trading center, both profit and loss objectives must be reduced. Also, the trader should always remember that if the market starts to move in a way that is difficult to predict, it needs to be more cautious with the exit orders even if the trading center shows a profit.

Each trader has their own trade strategy and habits. I hope that The Infinity APP Review will help draw readers’ attention to the importance of exit orders as one of the key trading destinations, which will certainly improve the results of the trade.

The Infinity APP
The Infinity APP

Forex — Dealing with Your Losses

One of the most important rules in currency trading is to try to reduce your losses as much as possible. When your losses are small, you can stay in the market for as long as possible, even when you are moving against you, so that you can benefit from market conditions when you start moving in the direction you want. One of the best ways to keep your losses at a minimum is to determine the maximum loss you can afford even before you open the trading center.

The maximum loss or loss is the maximum amount of capital you can stay comfortable even if you lose it during trading. Keeping your maximum losses at a certain percentage of your account balance will not stop you from trading at any time. Unlike 95% of forex traders who lose their money just because they have not followed prudent rules to manage their capital within their trading system, you will remain in good shape using this golden rule of capital management.

Let’s use an example. If you have a $ 1000 trading account and start trading at $ 100, you may be losing three consecutive times. This will reduce your trading capital to $ 400. Then you may decide to trade at $ 200 in the next trading center because you think you have a greater chance of making profit after losing three consecutive times.

If the trader decides to trade at $ 100 at The Infinity APP Review Trade because he believes he is able to make a profit, his capital will decrease in case of loss to $ 250. In that case, the chances of making money are almost non-existent because he will have to win about 150% of his capital until he reaches the point of parity. If the maximum loss has been determined and committed, the trader may not find himself in this position.

In this case, the reason for the failure was the trader’s risk of a large amount of money and the failure to apply good rules of capital management.

Keep in mind that the main objective is to keep the losses to a minimum. Also make sure that you open a large and sufficient number of trading positions so that we can maximize profits and reduce losses. With the introduction of the capital management rules within the Forex Trading system, you will always be able to do so.

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Forex: Exiting Positions at a Right Time
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