Search results

I prefer to use stop limits when I am entering a trade. But I'll suggest not using stop limits when exiting a trade. The reason is because there is a possibility that your order might not get filled.

It is important to realize that stop-loss orders do not guarantee you'll make money in the stock market; you still have to make intelligent investment decisions. If you don't, you'll lose just as much money as you would without a stop loss, only at a much slower rate.

I am interested in this contest. @Herbert, what are the rules? I just checked when the next contest would be coming up on the 2nd January. Registration completed. Are there any requirements aside from having a demo account?

Use stops loss as a money management method to help to cut losses and are especially useful for when you are not able to monitor the market.

I agree, that is why,unlike a market order, traders are advised to use limit orders as well. A limit order only fills at the price you want, or better.

When you over trade, you tend to generate lots of transaction fees. Many brokers charge you every time you buy or sell which can add up extremely quickly if you’re buying and selling too often. Those transaction fees drain your profits quite quickly.

The greater size of the Forex market gives it greater liquidity due to the numerous traders that are trading at any given time.

Market conditions may hinder a stop order from being executed exactly where you place it. That is why you should consult with your broker on their written policies and details of how they execute stop orders.

Losses, as we know, are inevitable. So the best thing for a trader to do is to prevent unmanageable trading situations and placing themselves in these disadvantageous scenarios.

Having considered what you have said, it is also true on the other hand that the less risk you take, the less you will win when the trading does go in a favorable way.

Recognizing forex chart patterns and the frequently they occur on the currency market, can help to confirm your trend direction. Some conventional chart patterns to be focused on are pennants, flags, double tops, double bottoms, ascending and descending wedges, and oscillations.

I agree completely! Trends don't fail, traders do. And if you don't know the trends of the market or you consistently trade against them it will cause pain and losses.

It is good to have an edge, but successful trading is about being in agreement and trading in direction of the market trend instead of going against it and being in agreement with other professional traders.

Thanks for taking your time to educate traders on common mistakes they make. I'll definitely check it out.

This is really helpful! Thank you very much.

I'll recommend the book "Day Trading for Dummies" Book by Ann C. Logue for advice and information day trading.

The book "The Intelligent Investor" by Benjamin Graham is a great one.

When selecting a forex trading platform are your trading style and experience level as an individual should be put into consideration.

I was impatient with the market. I was fighting it lol.

Stop-loss is a popular tool in the Forex trading community and you can possibly trade profitably without it. But, while the decision is entirely up to you, I don't recommend Forex trading without stop-loss.