Risk Management

Risk management is an integral part of forex trading. If you trade without putting any risk management strategies in place, you are essentially gambling and not investing. Forex trading carries the op

Stop loss

A stop-loss is used to close a trade at the indicated final level at which you can accept a loss. This means that your risk is limited to the point at which you have placed your stop loss. This strategy is very important, especially in volatile market conditions where Rapid price movements can lead a devastating blow to your portfolio. Stop loss as a strategy is very versatile and there are different types of stop loss orders that you can use in your strategy.

trailing stops

Unlike static stops, trailing stops can be changed depending on the trend and direction of the market. This means that trailing stops are more flexible than static stops. On the downside, however, when you use trailing stops you have to constantly monitor the market in order to determine the right time to move the stop loss.

take profit

the take profit strategy is one of the most effective strategies for both beginners and experience traders. A take profit order allows you to set a limit at which you will exit the trade once you reach the predetermined profit level.

One of the most common mistakes beginners make is holding on to a position too long. Sometimes when the market is going in your favor, you will be tempted to stay in the trade as long as possible to maximize the potential profit you stand to make. When this happens, there are very high chances that the trend will change and your gains get wiped out. to avoid this scenario, a take profit order helps you exit the trade while still in a profitable position.