Need a Strategy to Get Out of the Forex Market?
The best Forex strategy is being able to choose the best price when buying and the highest price when selling. For those of you who only think of a strategy to enter the market, you should start thinking about strategies to get out to the market too. Position out of the market is as important as entering the market because the profit or loss depends on the price when you leave the market.
It’s better if this target is defined on the chart or when making an order. Putting a target mentally can only be done if the forex trader really understands about 3M, namely “Mind, Method, Money”. Many strategies also review conditions to allow forex traders to get out of the market by profit among them by paying attention to the risk reward ratio and trailing stop.
Risk reward ratio is a comparison between the risk and the expected results of each forex trade. In general, the risk reward ratio should be 1: 2 or 1: 3 even if under certain conditions (eg scalping) can be 1: 1 for risk comparison: results. While trailing stop itself can be interpreted as moving the stop loss to the break event point position automatically and the stop stop moving itself automatically following the trend. If the market suddenly turns around, then you can still get a profit or at least a break event point.
There is little input regarding this market exit strategy:
1. Don’t let emotions overwhelm you and change the initial stop loss.
This makes the plan and risk management fall apart. Losses will generally be greater than planned.
2. Forex traders do not have to be able to control emotions and change profit targets
Similar to the point above only instincts work. This time is greed where the forex trader wants to get more profit by changing the target profit.