Placing stops playing an important role in the lives of traders who play the Forex market. Money management is the foundation of forex trading. This is the first in what must understand the trader. Without him, the trader is doomed to failure. Losses neotemlenaya of Forex trading. They will no doubt. The Forex market is by and large are not predictable. We do not know really where to go for money. We just have to learn to manage our capital and to achieve a result, when the stability we can have more profit, less loss of money.
So how do you best to place the stop loss?- First of all you have to risk 1-2% of your deposit. This is the foundation control of capital or money management. For example, six months ago I opened a mini-kitchen with real DC Fxstart :-) and became a test of one advisor. Once in the first month I got a strong drawdown somewhere 5% do not remember exactly, there were instances when I wanted so much to recoup, to open a large lot, but I knew that if break MM (money management), then quickly salt deposit. Councilor traded in the minus :-) but thanks to the rules of MM I have not merged their mikroreal, he is still alive, of course drawdown of up to 10%. But the point is that I have not merged at once, that is, within 6 months. I had a chance to think, and return the remaining money. But 2 years ago, I still poured its first mikroreal $ 100 in the kitchen Lite DC where I broke the rules of the MM + using locks, for $ 100 a month turned into $ 2.- In every position you must be a good mate. expectation. For example, if you stop 50P, then the profit should be at least 100P. That is, get 1:2. This means that if you have 10 negative transactions, you will be able to cover their 5 profit. For example I am now watching the forecasts from Saxobank (they are at the terminal every day make predictions). I do not know on what basis their predictions, sometimes I have a feeling that they just throw a coin every day at that place :-) well, or cleaner gives them analytics every morning :-) But the point is that they basically stops There are at 30P and a profit of 60 to 100, which is mat waiting on their side. Basically, they have minus the transaction, but sometimes they catch trends in 100P, so overlap loss. There are also trading strategies when the stop more profit, but they have the greatest probability of hitting the target. Typically, these signals are rare, but reliable, that is rarely work stops, but I'm skeptical of such types of systems. There are cases where people generally do not make the stop, and sell at a lower mph and at any time ready to close the position or risk a small part of the capital, such as they have 2% on each transaction can be 300p, that is for them not be afraid if a sudden movement sharply go against them and they do not have time to close the position immediately. Most importantly it is a good expectation or pro factor.- Never put a stop near the target values of numbers 00, 05, 10. For example, 2000, 2010, 2015, 2020, 2005. Why? Because at these values in most of the foot exposed. It is easier to put a stop to 2000 than for 1997 and say it is easier to remember. Therefore, our kitchen uses this in the hunt for the feet. If you need to put a stop to 2.0050 then it is best to put it to 2.0047 or 2.0043 than to put it to 2.0050.- You can use the values of ATR. This indicator, which measures the volatility of the currency. That is what range of currency fluctuations in a given time plot. Here is an excerpt of one article:Method stop ATR% can be used by traders of all types, because the width of the stop is determined by the percentage of the average true range (ATR). ATR - a measure of volatility for a specified period of time. The most common period - 14, which is also commonly, and for the oscillators, such as Relative Strength Index (RSI) and stochastics. Higher ATR indicates a more volatile market, while a lower ATR indicates less volatile market. Using a percentage of the ATR, you ensure that your stop is dynamic and varies according to market conditions.There are many other ways of placing stops that you can read in the various explanatory normal books, but most importantly it is able to psychologically endure a series of failed trades, or even losses. None of us is immune. No guarantees on the market, so he and playing the stock exchange is called :-) You can play at once, you can play and after 10 years of successful trading!
This trader is a trader who is willing to lose 5 times your deposit and continue to believe in themselves, to rise again and win back his own!