Closing the trade is right option at such times??
Many times it happens that in such situation you close the position and then
market hits target .
Lets discuss what is efficient way to react in such situation ?
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Closing the trade is right option at such times??
Many times it happens that in such situation you close the position and then
market hits target .
Lets discuss what is efficient way to react in such situation ?
You may follow half hedging to avoid margin call. And there are huge risky strategies to face the reversals, but its danger. Its better to trade according to the trend. And don't trade all the time in trend. Just leave the chart after getting your target. If you do over trading, then you should caught in reversals. I am also have huge experience that the market move reverse and then move favor for me. So, if your analysis is right, then wait for the target in patience.
I always use stop loss in long term trading. So when market moves opposite before SL i watch it carefully if market has very clears clues about crossing my stop limit then i close my trade and open a new trade in the direction of market.
Initially i keep on increasing my positions - trying to average down and at last most of the time lost every thing, but experience make me learn that chasing trend is dangerious and we should admin in time that our trade was wrong and should close it at appropriate stop loss. And enter with fresh analysis into another trade.
In forex everything is uncertain because of world financial movement.so its very easy to get
that situation when market moves in opposite direction.That time normally i wait for sometime.
but if i predict the market in new movement than close the position.
when market move against you its best to take the loss and trade with the trend ...its very bad to start going counter trend trying to impose your will on the market . the market has its own direction and fighting that direction will only make matters worse with your trading account . more so if we have a good MM ewe are good to go !
Main jab dekhta hun ki market opposite ja raha hai to wait karta hun ki mera kuch money recover ho jaye uske baad main close kar deta hun order ko fir us direction me laga deta hun to mujhe loss or profit money dono hi mil jata hai. ye situation to maine sief 2 hi time face ki hai baki time pe to maine apni pichli galti se sikh kar pehle trend ko dekhta hun ki wo kis taraf ja rahi hai fir demo then real account trading.
always place take profit and stop loss in your trade.if the market goes in opposite direction the stop loss prevent you from a great downfall.dont wait till the market comes favour for you that leads you loss every thing you have.i have experienced that.thats why i am saying friends