Do you the most common mistakes of the traders? They do not plan their exit when they place their trades. It is important that you also plan how you will close the trades if the trends do not turn out to be in your favor. Do not be surprised as it is common in Forex. The people think in one way and the trends happen to be another way. It is like you have placed your trades and the trends started moving against you. It has happened to thousands of traders for thousands of time and still, they are not taking any lessons from it. They still focus on entering the market at the perfect time. Perfect entry is important because it can save you from the volatility but you do not know the future. The trends can change at any time and you need to close the trades when it happens. If you only plan the beginning but not the need, you cannot make your profit. This article will tell you how you can plan your perfect exits to save your investment form losing. It will vary from situations to situations but you need to have an exit plan all the time.
Those who plan after they have executed the trade are the biggest losers. The expert Singaporean traders always say trading is one of the most sophisticated business in the world. You have to learn many new things to earn a consistent profit. Some of you might say, you will buy an expensive trading system from the senior traders and change your life within a short period of time. But no one can make money by following other people trading strategy. You need to have your unique system to deal with the price movement of the market.
When you do the market analysis in your trading platform, be sure you know all the tools in your platform. Your platform is like your battlefield. The better you will know about its tools the higher chance you will have to make money. Always assess the risk factors prior to the execution of each trade since it’s the most vital element to make money. Play within your rules and even if you lose trade never get frustrated.
Set a stop-loss
When we plan our exit plan, we assume that we have our computer in front of us when the trends started going against us. This may not be the picture in all the trades. You will find you are far from your platform and the trends have become volatile. To save you from this conditions, your trading platform has the option of stop-loss. This is a button that can save you from losing your money by closing your trades at a preset level. If the prices get too down or too up against your account, the trades will be executed automatically when it reaches your set level. This is the first way to plan your exit.
When the trends are still in favor
Many people have wonderful starting in Forex but they cannot keep their profit. This is because they become greedy and try to run their profit. As soon as you have made your targeted profit, close the trades. Do not keep them open for any longer or you will start losing money. Try to be consistent in your profit making and aim for small profit. It will take a long time to have a big profit but will save your capital.
When major news is released
News can have a huge impact on the chart. If you find major news are releasing or have a chance to unstable the industry, do not take any chance. Close the trades and stop trading until the market is stable again. Always know the release of news in advance to avoid clashing with your plans.