Forex Stop Loss Limit - Forex Stop Loss, Exit, and Limit Orders

Nov. 15, 2010 - PRLog -- Forex Stop Loss Limit

Forex Limit Orders describes the strategies and methods you can use to control your money or your Forex account. It helps you manage your money to lessen your expenditures.  We engage in Forex trading in order to make money.  It is good to have a fixed portion of your money and use this money to trade. A common money management strategy used by traders to risk only a fixed percentage (usually less than 5%) of your equity per each trade. This way you are losing money in a limited amount.  This practice is called a "stop loss" setting that you place on your trades.  It's also referred to as a "Limit Order".

Stop Loss order or an exit order is useful to help traders back out from trading that is going against them. This way you are preventing yourself from losing large percentage of your money as the trade continues to go down. There are two types of exit. The first one is Regular exit. Another is Back-up exit. The latter is also known as emergency stop loss. It enables the trader to exit farther away from the current price. Get your Forex Stop Loss Limit @ http://funeasyforex2.blogspot.com and be Successful forever!

Eventually, when you master these parameters, you are ready to engage in live trading. Remember that in live trading see to it, that you are protected to additional risks and you would still have the full control over your money. You should not let your greed consume you. Or else, you may lose big time.

Stop loss orders should be used carefully.  If you set your orders too tightly, the volatility in the market can cause a momentary spike past your trigger point.  If this happens,  your position is sold at a loss. Commonly, traders use Candlestick and Fibonacci charts of the previous movement patterns of the currencies being traded to help position their stop loss settings correctly. Get your Forex Stop Loss Limit @ http://funeasyforex2.blogspot.com and be Successful forever!

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