Why Stop Losses Are Key to Running a Home Forex Business 

Professional Surveyor Boards » General Surveying » Why Stop Losses Are Key to Running a Home Forex Business

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clararobert
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Joined: 12/5/2018
Topic  Why Stop Losses Are Key to Running a Home Forex Business       Flag »  Reply »
One of the biggest factors in FX MasterBotdetermining your success in running a home forex business - especially in the early days of trading - is to minimise the losses that you make. There is one feature of forex that stands head and shoulders above the rest that is used by experienced and successful traders follow and that is always ensure that a stop loss is used for every trade. If this is important for professional traders, how much more important is it for those working from home.

However, just to clarify an important point, a stop-loss is not there to ultimately define how much a trader will lose as part of the normal trading strategy. A top loss is there as a safety net, to prevent large losses when either totally unexpected movements occur or where the trader is for whatever reason not able to be present to close the trade.A stop-loss will ensure that exit levels are handled in a controlled manner and as such reducing the loses.

One of the biggest mistakes new traders (as well as experienced ones) make is to move the stop-losses further away to avoid a loss. In many cases all this does is increase the loss - although as always there are exceptions. Sometimes it is possible to identify the times when the market turns and moving the stop-loss as required, however, the probability is quite low that this will happen.

  Thursday, January 24, 2019 at 12:31:11 AM

Professional Surveyor Boards » General Surveying » Why Stop Losses Are Key to Running a Home Forex Business

 
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