Forex Open Position
So now you pulled the trigger and opened up a position, and now you're in the forex market. Time to sit back and let the market do its thing, right? No way. The forex market isn't a role of the dice where you place your bet's, and watch the dice tumble, and simply take the results.
It's a vigorous, fast moving arena where new facts and price movements create new prospects and alter previous anticipations.
We hope you'll take our recommendations about always trading with a plan - pinpointing in advance where to enter and where to exit every single trade, on both a stop-loss and take-profit basis. Bottom line: You improve your overall chances of trading success (and minimize the risks involved) by systematically planning each trade before getting caught up in the emotions and hype of the market.
Depending on the style of trading you're following (short-term versus medium- to long-term) and overall market conditions range-bound or trending, you'll have either more or less to do when managing an open position. If you're following a medium- to longer-term strategy, with generally wider stop loss and take-profit limits, you may prefer to go with the "Set it and forget it" trade plan you've developed. But a lot can happen between the time you open a trade and prices hitting one of your trade levels, so staying on top of the market is always a good idea, even for longer-term trades.
No matter what trading style you may follow, it will always pay to keep up with the market news and price developments while your trade is open. Unexpected news could impact your position at any given time. News is news; and you couldn't have planned for it in regards to your trading plan, but any news may require you to make changes to your trading plan at any time.
When we talk about making changes to the trading plan, we're referring only to reducing the overall risk of the trade, by taking profit (full or partial) or moving the stop loss in the direction of the trade. The idea is to be fluid and dynamic in one direction only: taking profit and reducing risk. Keeping your original stop-out point where you decided it should go before you entered the trade.
LEARN TO TRADE THE FOREX THE RIGHT WAY
To your Success
Kenneth Arnold
Forex World Blog
Forex Trading For Newbies The Tool Every Forex Trader Should Have.
Forex World Blog Your #1 Online Forex Trading Community.
It's a vigorous, fast moving arena where new facts and price movements create new prospects and alter previous anticipations.
We hope you'll take our recommendations about always trading with a plan - pinpointing in advance where to enter and where to exit every single trade, on both a stop-loss and take-profit basis. Bottom line: You improve your overall chances of trading success (and minimize the risks involved) by systematically planning each trade before getting caught up in the emotions and hype of the market.
Depending on the style of trading you're following (short-term versus medium- to long-term) and overall market conditions range-bound or trending, you'll have either more or less to do when managing an open position. If you're following a medium- to longer-term strategy, with generally wider stop loss and take-profit limits, you may prefer to go with the "Set it and forget it" trade plan you've developed. But a lot can happen between the time you open a trade and prices hitting one of your trade levels, so staying on top of the market is always a good idea, even for longer-term trades.
No matter what trading style you may follow, it will always pay to keep up with the market news and price developments while your trade is open. Unexpected news could impact your position at any given time. News is news; and you couldn't have planned for it in regards to your trading plan, but any news may require you to make changes to your trading plan at any time.
When we talk about making changes to the trading plan, we're referring only to reducing the overall risk of the trade, by taking profit (full or partial) or moving the stop loss in the direction of the trade. The idea is to be fluid and dynamic in one direction only: taking profit and reducing risk. Keeping your original stop-out point where you decided it should go before you entered the trade.
LEARN TO TRADE THE FOREX THE RIGHT WAY
To your Success
Kenneth Arnold
Forex World Blog
Forex Trading For Newbies The Tool Every Forex Trader Should Have.
Forex World Blog Your #1 Online Forex Trading Community.
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