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Trade
Trade Forex without stops
Most training courses for traders, organized in different brokerage companies, aimed at increasing the interest of beginners to trade Forex. The teachers in the classroom talk about what constitutes a market, who exactly is a member of the trading process.
Knowledge of entry-level contribute to a better understanding of what is happening in Forex. As a rule, in the story of the General rules of trading, the lecturer mentions that use of Stop Loss is necessary. Trade without stops immediately presented to beginners, as unnecessarily risky thing is that it is not advisable to practice in the foreign exchange market.
At the same time, work without Stop Loss in Forex practiced among beginners, and among experienced speculators. Why do people often violate the recommendations of teachers, textbooks, professionals? The reasons may be several, which divide into following groups:
• From despair
• Are willing to accept the risk
• Such a vision of the market
The first paragraph provides that the trader could try many different options Forex trading with stops, but no one was able to meet the needs of earnings. In desperation, the speculator is not ready to record losses on transactions waiting when the price will return to a positive range. It turns out that the work with the use of Stop Loss in such traders is associated only with losses, because of what people hope without warrants, restricting losses, their market outcomes will improve.
The second paragraph refers to those speculators who understand the risk of Forex market without Stop Loss. Counting the possible magnitude of profits and losses, given the degree of risk, the person considers justified trade without Stop Loss. Here we can talk about a conscious choice exercised by the trader, calculating probability of profit. Risks that will in any case be present in trading, these traders evaluated.
The third category of speculators that don't use stops, are traders who think his way of operating in the market the best, they are not willing to change anything else. Some of these options include work with systems averaging trades, trading with the grid positions and so on. Such strategies usually are purely mathematical, based on the calculations of man. The use of indicators rather minor and not necessarily.
Ways to trade without Stop Loss
There are different methods of trading that do not contain orders to limit losses. One of these ways is trading according to the system of averaging positions. Usually this method is combined with method of martingale. The results of this Union comes a strategy in which each transaction that enters loss, is complemented by another position in the same direction, but with increased volume.
In this case Take Profit of both transactions are set at the same price, which is often located between positions. As a result, if transactions were only two, the open market first position is closed with loss and the second trade with profit. The overall result of fixing the positions will be positive as the volume of the second warrants was greater than the volume of the first.
Another method of work at Forex without Stop Loss is a trading order grid. In this case, the market exhibited order in the opposite direction with a certain distance between them. Typically, when such uses Take Profit for each trade.
Price, passing on the market to one side, for example in the direction of growth, will close a buy position with profit, and to leave open trades for sale. The calculation of the trader is that sooner or later the market price will reverse and will go in the opposite direction, i.e. down. This will trigger a new transaction for sale and soon to be closed with profit.
Despite warnings and recommendations, many speculators continue to trade Forex without stops. Some believe such trading to be justified, some are trying to change the system in the direction of risk reduction. In any case Trading without Stop Loss is considered to be extremely risky, because it threatens the speculator is not just the loss of some limited value of money and the loss of all capital in the account.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 379
| Rating: 0.0/0 |
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