Trader’s aim is to earn as much as possible. In this race for profits, you should try not to lose your own money. For this to be done, you need to be able to protect your transactions from large losses.

Transaction Protection will work if you are not working with trading terminal. The price may fall sharply if there was a disconnection. Alternatively, exchange rate have changed dramatically so that you did not react in time and lost most of the money.

Usually newcomer loose his deposit. One of the reasons for this is improper use of stops. There are various options for setting stops.

1. Stop Loss

This order is created when you open a new order. His task is to close the order, if the price falls below the set. Its main advantage is working despite disconnected trading terminal.

The disadvantage of this order is a narrow corridor of values to set. Usually 15 points from the current price. In order to fix the profits, you will have to move it to the growing position manually.

2. Trailing Stop

Works on the principle of the previous order. The difference is that it automatically rises up to the growing cost. In this case, you may fix your potential profit. You can use it only with an active trading terminal.

3. Hedging

In the case of emergency, this order provides adding to the unclosed transaction another item of the same value.

For example, making a deal 1 lot in value, the pending order to sell immediately set a little less than the real price. Forex hedging strategy provide for the value of the pending order is also 1 lot. In case of falling prices, losses are fixed. You need to choose only what order to close.

 

We would like to kindly remind you:

Professional Forex Education with Masterforex-V is based on studies of New Technical Analysis.

The New Approach to market analysis will allow you:

- to analyze market situation within a few minutes (up to several time-frames synthesis);

- see the emergence of a new trend at the right time;

- recognize the emergence of „flat“ even before everybody else can realise it;

- find the "MF reference point", and therefore, the beginning of powerful movement of the market;

- consciously make profit, regardless of the chosen time period (scalping, daytrading, mid-term trading or long-term trading);

- And much more.

We know very well the main problems that traders face in their lives (regardless of their skills level). Years of successful training experience allows us to responsibly say: we can help you to solve these problems.

Give us a chance to help you!

Become a student of Masterforex-V Academy. If you wish to be trained and join the Masterforex-V Trading Academy – please e-mail on: members (at) masterforex-v.com