Dec 17

Stop-Loss to be Stop Profit with Forex Trading Strategy

Forex market becomes the dynamic environment with some certain aspects considered by a trader in running forex strategy. There are some things to understand making trader forget the small things. But, the small things can be important dealing with trading strategy. Stop-loss is a small thing that can change the world.

Stop Loss - Stop profit

Stop Loss – Stop profit

What Is Stop-Loss?

Stop-loss is an order placed to cover the opened transaction aimed at limiting the loss risks. For example, you open a forex transaction; buy 1 lot AUD/USD in the price of 0.81400. To be a forex strategy, you need to limit the risks in trading. You can position stop-loss in 0.81000. It means that the price goes down to 0.81000. The transaction will be deal at 0.81000 with the loss of $400. You have to understand the working principles of forex strategy in business and trading as well.

What Are Negative and Positive Sides?

No people want to have loss in trading. However, you need to learn in receiving it because it is one of trading risks. It has been explained that limiting loss risks enables to put stop-loss. The benefits of placing it is you do not need to see the movement graphic of price continuously. It is enough to put the stop-loss and risk level that have been limited before. Even, extremely, you do not turn off the computer and do the other activities if you have chosen stop-loss.

Though it proposes some positive effects, it actually offers the negative risks in forex strategy using stop loss. Stop-loss determined is likely touched by the price movement. Then, the price takes the opposite directions and meets your profit target. It is very disappointing but you have to be ready on the risks happened. Another risk is that the forex strategy is useful and not able to help in succeeding your trading. It is not able to boost the trading sales. Surely, the stop-loss strategy is great to change it to be stop-profit.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>