• Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions
Wednesday, January 27, 2021
No Result
View All Result
ABC Money
PR Fire Press Release Distribution
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
ABC Money
No Result
View All Result
Home Business

Traders thriving in volatile forex market

by Elliot Preece
06/12/2016

Let’s start with a simple assertion; when trading any currency there is always a high level of risk involved. This is particularly true in the current climate, however, with Britain debating whether or not to withdraw from the EU and talk of a global recession dominating economic circles.

Given this and the fact that not all traders are willing to take big risks, the forex weekly analysis market may well be avoided by those without the appetite for a challenge. After all, while there are opportunities to make huge profits in the foreign exchange these can often be counterbalanced by the chance of making a large loss.

The Importance of Stop Loss and take Profit levels

For this reason, many traders choose to set stop loss and take profit levels. A take profit order is where traders state an exact rate or number of pips from a currency’s current price where they want to close out the position for a profit. Stop loss is the exact opposite, where a specific rate is decided to stop trading to minimise losses. There are various ways to use this effectively when trading.

These measures can help you to automate and carefully manage your portfolio, minimising risk and potentially optimising gains over a sustained period of time. So long as you approach this from a position of knowledge and ensure that you use these features wisely, you can profit in a constantly changing, global marketplace. For example: –

Including stop loss and take Profit levels as part of your Trading Strategy

During the preparation for any trade, the stop losses and take profits should be incorporated into the trading strategy. When you go into real time trading it can be too easy to get carried away and hold out for either making a higher profit or coming back from a loss.

By setting these out beforehand it will ensure it is controlled, so that successful trades do not turn into losses or unsuccessful ones turn into highly damaging ones. It will also help you budget on how much to invest in your chosen currencies.

RelatedPosts

3 steps to set up a business in China

TOP ONLINE RETAILERS

All Your Questions About 18-Wheelers and Accidents Answered

4 Benefits of Using a PEO for Your Company

Load More

Use Appropriate Stop Losses

There are various methods for setting stop losses. The percentage based one is most common, which involves using a predetermined portion of a trader’s account for setting the stop loss or take profit. Ideally this should be limited to around 2%, though will depend on your finances and trading methods.

Support and resistance is another way that bases the levels on current market trends so you can risk more at profitable times. Time limit stop losses are set within a certain period so you cannot lose too much in one go, the trades stopping after a decided amount of time.

Make the Most of Calculators

The easiest way to work out what your stop loss and take profit margins should be is to use the FxPro calculator. This is a much quicker way to work out important trading calculations by inputting all the vital information such as the currency pair, leverage, position size and more. Whatever method of setting stop losses you decide to use this is an extremely helpful tool. If you’re hoping to make a success of forex trading and edge on the side of caution then setting stop loss and take profit levels is essential.

These steps enable you to understand the purpose of stop loss and take profit levels, while hopefully ensuring that you are able to utilise these to benefit your trading strategy. This is important in the current economic climate, and it may become even more so in the event of a global recession.

Featured Image – Source / CC 2.0 

Tags: forexforex weekly analysis
Previous Post

Donald Trump calls for boycott of Apple

Next Post

2016 is the best time to become an Entrepreneur

Related Posts

3 steps to set up a business in China
Business

3 steps to set up a business in China

27/01/2021
TOP ONLINE RETAILERS
Business

TOP ONLINE RETAILERS

27/01/2021
All Your Questions About 18-Wheelers and Accidents Answered
Business

All Your Questions About 18-Wheelers and Accidents Answered

26/01/2021
Next Post
2016 is the best time to become an Entrepreneur

2016 is the best time to become an Entrepreneur

UK homeowners count cost of winter storms

UK homeowners count cost of winter storms

Study finds men more likely to be victims of theft and to damage belongings

Study finds men more likely to be victims of theft and to damage belongings

Latest News

3 steps to set up a business in China

3 steps to set up a business in China

27/01/2021
Five Crucial Tips to Crack any Insurance Exam in First Attempt

Five Crucial Tips to Crack any Insurance Exam in First Attempt

27/01/2021
It’s Always Good To Have Options

It’s Always Good To Have Options

27/01/2021
Padrós Asks To Allocate Non Essential Budget Items

Padrós Asks To Allocate Non Essential Budget Items

18/01/2021
How Staying Connected to Electrical Installations Enables Greater Business Efficiency?

How Staying Connected to Electrical Installations Enables Greater Business Efficiency?

27/01/2021
TOP ONLINE RETAILERS

TOP ONLINE RETAILERS

27/01/2021

Social

Contact

For editorial enquiries:

editorials@abcmoney.co.uk

For advertising enquiries:

advertise@abcmoney.co.uk

Top Topics

  • News
  • Business
  • Finance
  • Property
  • Technology
  • Investment

Guides

  • Best UK Bridging Loans
  • Best UK Secured Loans
  • Best UK Commercial Mortgages
  • Best UK Business Loans
  • Best UK Payday Loans
  • Best Sites for International Money Transfers
  • Best Press Release Distribution Service

Social

  • Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions

© 2020 ABC Money

No Result
View All Result
  • Write for us
  • Contact
  • About Us
    • Authors
  • News Desk
    • Business
    • Finance
    • Property
    • Technology
    • Investment

© 2020 ABC Money

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.