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Thread: Position management, managing stoploss and knowing when to exist a trade

  1. #1
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    Position management, managing stoploss and knowing when to exist a trade

    I have been doing trades on the demo account for some time now. That way, have learned few things which is how one could manage their position and protect their account balance.

    There is the picture of my EURUSD trade, clearly, I took that trade after the trend line support breakout on the daily chart which is my favorite chart. Initially my stoplos was placed about the open price of the candle that did the breakout.

    The market has moved down for some few candle sticks. As I am not sure of the market, in this case to have my money protected and manage my position till it gets to the target which is 1:5 R/R. I have moved my stoploss to break even. Also I took another position when the 1.0803 support level got broken and I will soon move my stoloss to break even too.

    Attachment 13066

    Question.

    Do I know where the market will get to and reverse?

    My answer is NO.

    I will simply wait for my first trade to get to it's target and it's either I close it or I wait for it to be triggered, then I will also wait for the second position. No one knows where the market would go.

    Here is also a picture of USDJPY and I did the same thing here.

    Attachment 13067

    This is the way I generally manage my position.

    NB: This is my demo practice and this is the way I intend doing it on real account.

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  2. #11
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    Quote Originally Posted by splash View Post
    Of course it is two different thing or rather three different thing, making analysis, and spotting a trading opportunity and then opening the trade and then managing the trade, it is all different, therefore we need to learn all these on the demo account before coming to the real account to trade. This is an apt way of managing our trading though I do mine in a different way.
    Which ever ways, the most important thing to note about this is that one is able to take position and close it safely with some good amount of profits in it, that is what that matters most. This also would help traders to be in check for greed and would control it.

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  3. #12
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    Quote Originally Posted by sharegistFX View Post
    Which ever ways, the most important thing to note about this is that one is able to take position and close it safely with some good amount of profits in it, that is what that matters most. This also would help traders to be in check for greed and would control it.
    yes, traders has to note that one, the position is to be entered correctly and exit correct. that is good way to trade and traders will be needing the good psychology to trade. and the management of traders is about knowing the best possible way to have the stop loss and the profits.

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  4. #13
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    when you know how to do the the two you are able to work with great precence of working process and interventions that prove that when we gain in forex there is a lot to work on the right has to be welll prevailed and well understood when we are the right traders in forex

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  5. #14
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    Quote Originally Posted by sharegistFX View Post
    Which ever ways, the most important thing to note about this is that one is able to take position and close it safely with some good amount of profits in it, that is what that matters most. This also would help traders to be in check for greed and would control it.
    Yes, no matter the target that we aim on, in as much as profits is been made and our account keeps on growing then I think we are doing all fine. Thus the essence of having the position management method is also to ensure effective trading to the profitable stage which will lessen the emotions traders would be having.

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  6. #15
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    I'm a newbie Forex trader. I thought this would be more fun than just trading stocks and it requires a whole lot less research to trade Forex. Actually just keeping up on the news is sufficient.

    Anyway, I've spent so many hours a day for weeks reading forum posts, watching Forex trading tutorials on YouTube, and even bought a trading robot to do what I'm too snobbish to do (which is an insane way to trade to say the least). After 3 weeks I finally have a profitable technique. Last week when the European markets were crashing the US stock markets and the Dollar was gaining strength as traders worldwide dumped gold and stocks to buy US treasuries I actually made money in the Euro/USD market. 5% total account profit in just 2 trades on one practice account. I have 3 practice accounts with 2 different Forex brokers because I'm still a newbie and still learning.

    I use a scalping strategy and it gets crazy on the 1 minute chart. I'm switching to the 5 minute chart this week. I have to say this because it is so true - the most important thing I need to be a successful Forex trader is patience. I use 4 indicators to help me decide when to enter a trade and I used the 1 minute chart and I also use the 5 minute chart next to it with the same indicators because the 5 minute chart helps me determine a trend in the 1 minute chart. One thing I noticed about Forex charts is that they are fractals. 1 minute looks like a 5 minute that looks like the 15 and so on.

    About the stop loss now... I don't know if this is an effect from my trading strategy or not but on every practice account I have the times I lost big were the times I used stop losses. Every time I used a stop loss my accounts took a huge hit so I quit using them but still I panic when I enter a trade and see the candles form below it using my buy line as the new resistance. I feel bad but I have to have patience and trust my strategy. I've seen my accounts drop 15% with one or two trades open but my indicators tell me that it's going to rebound. I force myself to be patient and it almost always does. The -15% ends up +12% and my expert advisor kicks in with the trailing stops as the candles tick up.

    Just experimenting and screwing around I have a 88.9% profit to loss ratio not using stoplosses and the other account I have 84.84% profit to loss ratio. Just the stops that the EA creates after the trade goes positive for me. The latter account I lost profit on5 of 28 trades. 2 of them because I panicked and exited the trade because my candle was dropping hard and fast. Had I been patient and waited 2 hours with the trade open I would have made a large profit. The other 3 losses were because my profit although positive wasn't enough to cover the commission or the spread so metatrader counted them as a loss.

    So my point is that every time I sell short with a stop loss or by panicking I lost money. Every time I am patient and leave the trade open even though it's heavily negative it came back and I made a profit from it. As others said it's all about the timing of the trade.

    Oh, by the way, the 3rd practice account with the robot started off really well but it ended up losing most of its profits in 3 days. It made 1%-2% profit while I made 16%-17% on one of my practice accounts. And the robot was using a lot of stop losses.

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  7. #16
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    Quote Originally Posted by silverlady View Post
    yes, traders has to note that one, the position is to be entered correctly and exit correct. that is good way to trade and traders will be needing the good psychology to trade. and the management of traders is about knowing the best possible way to have the stop loss and the profits.
    [lang=id]of course, the risk is started at this point, traders need to get the right time as the gate for them to enter and exit from the marker correctly, and it will give them the results for good or bad and all depend to them who analyze the market and also for how much the risk that will taken is very important for them to calculated with well[/lang]

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  8. #17
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    Quote Originally Posted by samprazaan View Post
    [lang=id]of course, the risk is started at this point, traders need to get the right time as the gate for them to enter and exit from the marker correctly, and it will give them the results for good or bad and all depend to them who analyze the market and also for how much the risk that will taken is very important for them to calculated with well[/lang]
    yes, traders will know this is the risky business, they have to be following the good plans which will not let the risk affect them no matter how strong it is. that is the efficient part of the stop loss use. the trader can make the discipline of their management too.

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  9. #18
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    Quote Originally Posted by silverlady View Post
    yes, traders will know this is the risky business, they have to be following the good plans which will not let the risk affect them no matter how strong it is. that is the efficient part of the stop loss use. the trader can make the discipline of their management too.
    Traders can not get it all right at all times, they need to know how to be patient and also manage their positions. They should also not be greedy so as to effectively manage their trade and reduce the rate of having a winning position turn to on which makes them loss. Position management is so much important and should be done rightly.

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  10. #19
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    Quote Originally Posted by splash View Post
    Traders can not get it all right at all times, they need to know how to be patient and also manage their positions. They should also not be greedy so as to effectively manage their trade and reduce the rate of having a winning position turn to on which makes them loss. Position management is so much important and should be done rightly.
    Yes there is always chances that we get losses in our trades. But with risk management we can make sure that a loss is not final and we have more chances to get profits. Forex depends on reading the reality as it is not as we wish it to be. wishful thinking is source of loss in forex.

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  11. #20
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    Quote Originally Posted by splash View Post
    Traders can not get it all right at all times, they need to know how to be patient and also manage their positions. They should also not be greedy so as to effectively manage their trade and reduce the rate of having a winning position turn to on which makes them loss. Position management is so much important and should be done rightly.
    Forex traders are making mistakes if they believe they can be right all the time, that is very wrong of the trader. Forex traders will lose when they read their analysis correctly at times, so, it is at the best interest of the trader to plan for their entry, exits and overall management of their trading account. This is the right way to trade and the market will not caught you unaware.

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