Save deposit and stay in profit
Do you want to save your deposit and always stay in profit? First of all, follow the main rule – especially relevant to open all orders with Stop loss, ONLY !!!! It’s the best way to get profit in Forex.
Lets find out why!
A trader should see what profit potential is available at a given time, and what the risk is in case the deal is against him. If the ratio of potential risk to potential profit is more than 1/3, it is not recommended to take action. Moreover, if you assume that the deal (order) profit will be 40 cents and at the same time have a real chance to lose 20, probably this is a lousy deal in the beginning.
How to determine the instrument potential profit?
To stay in profit Forex, first of all, the trader must know the price levels of support and resistance (ranges) of the instrument. They are visible on the graphs, always. Furthermore you need to define ATR by using ATR indicator. Daytraders (traders who are trading within a day – intraday trading), most of all, pay attention to the nearest levels of support and resistance. Those which are visible on the chart in the last 3-5 days and these levels may have different significance.
When a trader has estimated the potential profit of the deal, it is necessary to analyse its risk. The risk of losses is mainly determined by the orders Stop loss point. You already know the potential of the instrument and the price at which you will have to place Stop loss. Determine for yourself the maximum price for which you agree to buy, or the minimum price for which you are willing to sell. This price will let you identify your order volume (lot size) after.
You can open orders at pending stage using By Stop (then you expect the increase in price) and Sell stop (then you expect the decrease in price).
If you will follow all given as a result you will profit Forex, probably.