| |
|
Article Directory :: Finance & Investment Articles
For foreign currency traders who practice forex scalp strategies, knowing as many scalping techniques as possible is vital. You want to be able to move in and out of the market as fast and as often as you can, and at the same time, maximize your profits from each trade. Even the tiniest improvement in your fx trading technique can make a huge difference to your bottom line. So here is a little trick that can help you make the most of a winning trade.
It is a well known fact that one of the quickest roads to ruin in forex scalp trading is to hold onto a trade that you should have closed, hoping and praying for bigger and bigger profits. Eventually it is going to turn around and bite you where it hurts. At the same time, it can be an absolute killer when you close out a trade with your planned gain amount achieved and then see the price continue on and on in the right direction. In that situation it is only human nature to be discontented with what you came away with and feel that you closed the trade out too early.
Fortunately there is a way to take advantage of those bigger movements without abandoning your forex scalping system completely. It can be used by any trader who is trading more than one lot or whose broker accepts fractional lots.
This strategy involves waiting until the price reaches your preset profit target, and then closing half of the trade. So you take half of the profit, and at the same time, move your stop loss and set a new limit order.
The limit order will of course be set for a new profit target. This may be the same as your original profit target over again, or it could be a little less, but do not make it more. Either be satisfied with that or, if your position size allows it, repeat the strategy and close out half again when the new target is reached.
There are two possibilities for the new position of the stop loss. Firstly, you can move the stop to your original entry position less the spread, so your worst case would be that you would exit with the half profit that you have already taken and break even on the other half. Secondly, you can move the stop half way between your entry point and the original setting of the stop.
The question of which stop position is best will depend upon your system and its profit target position. Clearly you do not want to move the stop so close to the current price that it will be triggered by any fluctuation. But that is something that you can easily test.
Of course, you should never mirror this strategy with losing trades by hanging onto half of your losing position. Always close out a losing trade entirely. This forex scalp strategy is designed to maximize your wins and you certainly do not want to maximize your losses!
Get Free Forex eBook - James Roshwood writes about Forex and welcomes new visitors to his excellent Forex Blog - GreatForexWorld.com by giving them a cool free forex gift. To get your free tips regarding forex trading and to visit the blog at Great Forex World just click on this link ==> Get My Free Forex eBook
 EasyPublish™ this article - publishers click here
More articles by James Roshwood
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
More finance articles: - Simple Tips To Get The Most Out Of Your Auto Insurance (Winston Takeda)
Believe it or not, there are plenty of ways to save money on your car insurance. In this article, you'll learn some methods that will really help. - Student Loans: Collections Differ From Other Unsecured Loans (Holly Petherbridge)
When taking out a student loan, you are signing on to an unsecured debt which will stay with you until it is paid off. Student loans follow a different set of rules when it comes to collecting on defaulted loans. Understand your reponsibilities before you take out the loan. - Buying A Loft Condo (Steven Johanssen)
All condos and lofts are not created equally. You need to know all of the facets of each unit and condo complex in order to make the right buying decision. Find out why and if a condo or loft is right for you. - However Complex Invest With Full Understanding Always (Shane Flait)
Investment types range from simple to the complex. But whatever the case, you must understand how your investment will work for and against you - or suffer the consequences. Don't let complex investments lure you into investing without proper understanding. - What's Your $1 Million Business Worth? (Chia-Li Chien)
What are the three most important things in real estate investment? Location, location and location. But what makes a privately held business valuable? According to Rob Slee, founder of Midas Nation, it's timing, timing, timing. During my 2nd quarter 2010 SRI Business Retreat, Slee said you have to play the Transfer Timing Slot Game if you want to maximize your business's value for sale. Let's explore what Slee meant by that. - Know What Your Numbers Mean (Chia-Li Chien)
Have you ever faced a situation in your business and found yourself saying, "I know I need to do something, but I don't know what. Just tell me what to do and I will do it." Emotionally you feel panic, fear or even shame, especially when it comes to business finances. Potentially, that could trickle down to your personal finances, as well. - Need Money? Think Private Capital Markets (Chia-Li Chien)
When it comes to capital financing options, even savvy entrepreneurs seem to harbor misconceptions. For an overview of each option, as well as the cost (expected rate of return) associated with each option, read on. But you should always consult with your team of advisors and conduct a cost analysis to help you make the right decision. - Payday Loans: Responsible Lending And Borrowing (Holly Petherbridge)
Responsible lenders and borrowers go hand in hand to make financial transactions a success. Know everything there is to knwo aobut your loan before you sign the contract. Payday loans can be very helpful with emergency costs. Understand how they work in order to make the most of your loan.
We Automatically Distribute Articles
To Thousands Of Publishers And Web Sites:
Submit Article
All content is viewed and used by you at your own risk and we do not warrant the accuracy or reliability of any of the information. The views expressed are those of the individual contributing authors and not necessarily those of this web site, or its owner, Takanomi Limited.
|
|
