Trading without Stop Loss and Take Profit is not advisable and not the right thing to do. By doing so you jeopardise your capital/equity. Traders should learn to be contented! ‘contention is gain..
Success in Forex is determined over the long term period of one month;Bi-monthly,Quarterly or Annually as the case maybe. Hence the need for Stop Loss and Take Profit accordingly prior to placing your trades thus:-
1. Determine at what price you intend to exit your trade should the market move in the direction of your trade;
i) LONG OR BUY TRADE; If you are to go LONG(BUY) and having placed your trade please note the entry price.
ii) ADD the number of the pips you intend to take out of the market to the entry price to determine your take profit(TP)price level.
i) SHORT OR SELL TRADE; If you are to go SHORT(SELL) and having placed your trades please note the entry price.
ii)SUBTRACT The Number of pips that you intend to take out of the market from the entry price to arrive/determine the take profit(TP)price level.
2. Always determine at what price you intend to exit your trade should the market move against your trade;
i)LONG OR BUY TRADE; If you are to go LONG(BUY) and having placed the trade,please note the entry price.
ii)SUBTRACT the number of pips (from the entry price) to arrive/determine the price level in which if the market breaches that level it should close you automatically as this will minimise your loss.
i)SHORT OR SELL TRADE; If you are to go SHORT(SELL) and having placed trade,please note the entry price.
ii)ADD the number of pips (to the entry price) to arrive at a price level in which if the market breaches that price level it should take you out of it automatically.
The use of take profit(TP) and Stop Loss(SL) in Forex trading cannot be over-emphasised. Most newbies or new traders come to grasp of its importance as far as longevity in the business of trading is concerned.
One should not feel that because EUR/USD or any other currency pair moved 70 pips today or more then one should set STOP LOSS or TAKE PROFIT . That is simply a wrong mindset..
Please note that the high drop in prices or high increase in prices do not occur every now and then, so traders must incorporate Stop Loss and Take Profit as part of their trading plan.
For more InstaForex Nigeria Tips on How to make money in Forex. Click here..
Your ability to abide by these four basic rules as contained in this post would help you make money out of the Forex market!
The Forex market is a 5.2 trillion dollar daily market. This is higher and more than trades in all the world’s Stock exchange put together. This is what makes the market tick. Come to think of it; The Banks especially in advanced countries,Investment companies,millionaires,billionaires such as Warren Buffet, George Soros,etc are all in it making lots and lots of money out of it. With the recent BREXIT REFERENDUM many Forex traders made money more than ever before. What are we saying here?
Knowledge!!! According to the WD GANN (the greatest Forex trader of all times)”money spent on gaining knowledge is money in the bank”.At instaforex.com.ng we teach you how to make a business out of it.
1. ABILITY TO OBSERVE SUPPORT AND RESISTANCE ON YOUR CHART.
This is one key factor that enables traders to make money in the Forex market. The best means is the ability to observe it on a bare chart and utilise the Resistance and support areas in making money out of such market as regards your entry and exit point/areas.
At instaforex.com.ng Our experienced trainers and analysts are always ready to take you on a one-on-one basis and show you the technical way forward.
2. THE USE OF INDICATORS
Indicators act as a guide. Ability to abide by its rules is very vital and would help you make money out of the Forex market. Patience is a virtue. Good indicator should be able to give or produce a minimum of 65% actualisation of trade targets. At InstaForex Nigeria we make available to our trainees,indicators with a minimum 75% good trades at no cost(free).
3. RISK/MONEY MANAGEMENT.
Every Forex trading platform has its money/risk management embedded in its VOLUME.The traders ability to understand the use of volume as regards money/risk management relative to his/her broker give you an edge. InstaForex is a micro platform provider,this allows both small and huge investors alike to have access to the Forex market via its trading platform.
4. SEEK A MENTOR
it is said that when you stand on the shoulders of mentors,one could avoid the various pitfalls or mistakes along the road to financial freedom. Mentorship is one of the Edges a trader utilise in making money out of the Forex market; SEEK IT,Go for it,start making money and you would be years and years ahead of your trading peers.
Come join the World’s leading Broker and you would be glad you did. At www.instaforex.com.ng it is nothing more than “Instant Forex Trading”
This post from InstaForex Nigeria is designed to educate traders on how best to avoid pitfalls in Forex trading.
1. INADEQUATE KNOWLEDGE: Trading is knowledge based. Most newbies don’t take time to acquire the required knowledge instead with shallow knowledge acquired from Forex workshop/Seminars they take a plunge only to get their fingers burnt.
2. AFRAID TO TAKE A LOSS: Trading is business and losses are part of a business and should be taken as part of expenses. Please note that getting trades wrong is natural and should be expected. So don’t give up easily; only re-strategise. At InstaForex Nigeria how to minimise losses are adequately taught to our trainees by our award winning Mr Paul Odibeli of InstaForex Nigeria Technical Support Department.
3. OVER TRADING: Most traders particularly newbies tend to trade excessively undermining their equity. This is not advisable at all.
4. EXCESS LEVERAGE: In as much as leverage would enable the trader to make more money, one should remember that it is a two-edge sword which in most cases gets a trader’s account wiped out. In other words, high leverage is of great benefit for one to grow his account.
5. INDISCIPLINE/MONEY MANAGEMENT: Trading is a long term business and should be treated as such. Most traders in a bid to grow their account throw caution to the wind thereby negating all the rules. This happens to most greedy traders/newbies and they get their account wiped out thereby giving up easily.
All these and other mistakes in Forex trading are duly treated/handled and advised to our clients at www.instaforex.com.ng
Why would you choose a broker like InstaForex?
In life before making a choice we must consider certain variables to enable us choose the best out of other options. This same principle applies in the Forex market too where there are over 100 brokerage firms.
So to make that decision, I want you to give an answer to this simple question: Does servicing a client base of over 2 million mean anything to you? If the answer is yes then your choice will be InstaForex. Client is the life of a company; InstaForex has the largest number of clients comparing with others. They earn the trust of client by their good service and distinct idea of trading and live support to their client. On Dec 7th, 2012 we got an email from IFX PR that says the broker (InstaForex) is now serving over One million and On Dec 19th, 2014 we got an email from IFX PR that says the broker (InstaForex) is now serving two million. Here is the official PR page from them: http://instaforex.com/million_clients.php
Lots of brokerage houses are giving facilities of Forex trading to their clients but InstaForex is the best in all these criteria:
- No scam
- Forum facilities
- Maintain due time and no delays
- No cheating
- Deposit minimum $1 and have 1:1000 leverage.
- Less amount of spread
- Every popular payment processor are available.
- Demo contest
- Well paid bonus system other brokers have copied
- 24/7 live communication service/chatting service
Now, let’s discuss a few of these points:
- No scam –InstaForex gives daily trade summary because it’s a very reliable Many brokers serving their clients all have mixed properties for example; if one broker is facilitating one thing better than other but at the same time that broker will have disadvantage in some other field so no one is perfect, only Instaforex is the best broker company in all respect of providing better services to their clients. InstaForex is the best broker of Asia in past couple of years. Also, Global Banking and Finance (which is known as a very reputed organisation for financial activities worldwide) awarded INSTAFOREX with best broker of Asia.
- Forum facilities – You can place reply to post on mt5.com and get paid $0.20 per post. This is to help clients that do not have capital to start their trading with.
- Maintain due time and no delays – in case of deposit and withdrawals. Some brokers play tricks when a trader wants to withdraw his profit, they make up new rules to prevent the withdrawal, this is not so with
Other points to be discuss like Scalping facilities, availability of many demo contest etc will continue next week. Most of the people join InstaForex because they know they‘ll get the best experience as a trader. So I highly recommend you choose InstaForex as your choice broker.