Posted by forex at 1:28 AM
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1. Develop a strategy to determine the best time to enter and exit the FOREX market. To withdraw a profit, you first must earn a profit. Traders use technical and/or fundamental analysis techniques to know when profitable trades are most likely. There are many techniques from which to choose, but prudence dictates that you perform extensive hypothetical trading before employing any technique for real trades.
2. Enter a take-profit order for each traded position. A take-profit order automatically closes out, fully or partially, an open position whenever a specified price is reached. You enter a take-profit order at the same time you enter a position. The take-profit order is executed on an 'if-done' basis: it is only operational if your original order to establish a position is fulfilled. If you trade multiple FOREX lots at the same time, you can use a staggered set of take-profit orders to close out portions of your position as your profit increases.
3. Enter a trailing stop loss order for each traded position. A trailing stop specifies the maximum percentage loss you are willing to experience before closing out a position. The stop is executed on an 'if-done' basis.Because it is a trailing stop -- as opposed to a fixed stop -- the stop-out price moves along with your profits, if your position moves up instead of down. For instance, if you have a 10 percent stop on a currency pair purchase and your position goes up 15 percent, your trailing-stop loss will rise 5 percent above its original value to maintain the 10 percent differential.