As tactics lay the foundation for forex trading, four of them of great
importance are introduced herein based on the aim of assisting you to
triumph!To get more news about Forex Trading Strategy, you can visit wikifx.com official website.
The term refers to conducting the purchase or sale based on the current trend. In fact, following trends is not easy as the process is rife with uncertain factors, including trend analysis and decision-making.
This tactic is the most commonly used because the possibility of success is often boosted by the trend-following even though you may not agree with this view.
It is so hard to forecast the market trend that success in forex trading relies on risk management.
The first step is keeping your positions under control. It would be better to limit the largest loss of every transaction to around 3% of your total capital.
The second step is confirming your endurance in face of the price fluctuation, indicative of a threshold for selling your positions when prices fall below the cost. In this case, you can calculate the maximum that you can buy.
Acceptable purchase volume of lots = (the ratio of each maximum loss to the total capital) / (the maximum of stop-loss per lot)
Range of holding positions = (margin call per lot) / principal
Adding after profit-gaining
Adding positions in the wake of gaining profits is key to success in forex trading, the indication of the necessity for the addition to lucrative positions.
Exiting after profit-taking
If a transaction can embrace the profits accounting for over 20% of the total capital, it would be better for you to withdraw half the profits and deposit them as a margin to tackle the risks in the future.
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