How to Exit Forex Trade Positions at the Right Time

This article covers one of the most important aspects of trading in general and Forex trading in particular – managing of orders and positions. This includes choosing entry points, making decisions about exit points, stop-loss and take-profit of the trader. I hope this article will help new traders, who just began to work with Forex, and also to experienced traders who trade regularly and regularly make or loose their money to the market.

When I started to trade Forex and made my first big losses and profits I began to notice when very important thing about the whole trading process. While the right time to enter a position was rarely a problem for myself (nearly 80% of all my open positions had gone into the “green” profit zone), the problem was hidden in the determining the right exit point for that position.

Not only was it important to cut my risk on the potential losses with stop-loss orders, but to limit my greediness and take profit when I can take it and make it as high as I can. There are many known guidelines and ways to enter a right position at a right time – like major economic news releases, global world events, technical indicators combinations, etc. But while the entering into a position is optional and trade can decide to miss as many good/bad entry point moments as they wish, this is untrue if we talk about exiting a position. Margin trading makes it impossible to wait too long with an open position. More than that, every open position in a certain way limits trader’s ability to trade.

Choosing the good exit points for positions could be an easy task if only the Forex market wasn’t so chaotic and volatile. In my opinion (backed by my trading experience) exit orders for every position should be toggled constantly with time and as the new market data (technical and fundamental) appear.

Let’s say, you took a short position on EUR/USD at 1.2563, at the time you are taking this position the support/resistance level is 1.2500/1.2620. You set your stop-loss order to 1.2625 and your take-profit order to 1.2505. So now, this position can be considered as an intraday or 2-3 days term position.

This means that you must close it before it’s “term” is over, or it will become a very unpredictable position (because market will differ greatly from what it was at the time you have entered this position). After the position is taken and initial exit orders are set, you need to follow the market events and technical indicators to adjust your exit orders.

The most important rule is to tighten the loss/profit limit as time goes by. Usually if I take a middle term position (2-4 days) I try to lower the stop and target order by 10-25 pips every day. I also monitor global events, trying to lower my stop-losses when very important news can hurt my position. If the profit is already quite high, I try to move my stop-loss the entry point, making a sure-win position.

The main idea here is to find an equilibrium point between greed and caution. But as your position gets older the profit should be more limited and losses cut. Also, trader should always remember that if the market began to act unexpectedly, they need to be even more cautious with exit order, even if the position is still showing profits.

Every trader has their own trading strategy and habits. I hope this article will make its readers think about such an important aspect of trading as the exit orders and this will only improve their trading results.

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  • No need to stare at charts all day
  • No need to worry about opening or closing positions
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Our primary concern is to keep you on the winning side. Unlike Forex brokers, who occasionally profit from your loss, The Piptionary Club works for you and not against you. 

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  • You don't need to know what a certain currency will do in the market today 

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How to Enjoy Trading and Enjoy Your Life

This article is for traders that spend every waking hour focused on trading. And traders who think they need to spend every waking hour focused on trading. While this may be fine for some it is not for me, I know this because I used to be that guy.

I originally became interested in trading because I dreamed of being rich and having the time to do what ever I wanted. I have a compulsive nature to begin with and I hunger for knowledge. This combination led me to work constantly, to learn more about trading.

I maintained a full time job and studied trading strategy at night, often until midnight only to get up the next day at 4:30 A.M. to go to work. Studying the markets were a 7 day a week thing for me. This went on for a couple of years.

From time to time I would personally meet other traders and met some through the net. Over time I noticed that some traders did not obsess over trading the way I did. Most did but a handful did not. I thought that one day if I worked hard enough I would be like them.

Then one day I met a man that changed my thinking. Through our discussions about trading I realized that he started about the same time as myself. He did not have as much experience as I had and it was apparent that his knowledge of the markets was not as extensive as myself.

The curious thing was that he traded only 2 hours per day and did not work any other job. The rest of his time he played golf and spent time with his family. I questioned him in hope that he would share his secret trading formula with me.

To my surprise he did not have a secret weapon for trading markets. Instead he had a secret weapon for life in general. ENJOY IT!!

That day I realized that I had lost sight completely of my original goal which was to have more time. I had ran completely in the opposite direction. Instead of trading freeing from a job it had become more of a job than my actual job was. My percentage of winning trades was not where I wanted it to be and thought that I could study my way to a better percentage.

After talking with him I decided to take a break from trading and come back with a new perspective. When I again started to trade I only allowed myself to spend 2 hours per day on trading. I was much more relaxed and I traded less often. This turned out to be great, my win percentage went up because I was more selective in my trades and I was not stressed out about everything. Today I enjoy life much more and trading is what I thought that it could be.... Thanks Robert

Remember there is a lot more to life than trading. Life is to short to spend every hour looking to make the next great market move. What if that next move doesn't occur in your lifetime, then what have you gained. Trading is wonderful and I do love it but I'm not going to sacrifice my life and the happiness of those I love for it. I have a life I fully intend to enjoy it.

Let the Piptionary Club traders do all the work so you can enjoy your life.

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Our primary concern is to keep you on the winning side. Unlike Forex brokers, who occasionally profit from your loss, The Piptionary Club works for you and not against you. 

Another reason to use the Piptionary Club auto trading service is you can trade 24 hours a day, even when you are not near your computer. Imagine, you can be at a friend’s party and find out that you just made a huge profit! It’s kind of like the feeling you get when you find money in your pocket - multiplied by 100.

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The Piptionary Club auto trade service can be a great trading tool for any Forex trader - no matter how experienced they are. However, our auto trade service offers the biggest advantage to new traders:

  • You don't need to know the market
  • You don't need to know how to read the charts
  • You don't need to know what a certain currency will do in the market today 

Essentially, you don't need to know anything about the Forex market, and you can become a very successful Forex trader. And the Piptionary Club traders have a proven track record. Check out our year-to-date results on MyFXBook:

Our traders have produced an 80% gain in the last six months with an average monthly gain of 12%. But we only have 100 spots available for this service. Once it fills up, you'll be placed on a waiting list and get in only if someone else decides to cancel. 

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How to Avoid Making Major Forex Mistakes

One of the biggest downfalls of the Forex trader is emotion. When you don’t know how to handle emotions, you to make bad decisions that could blow your account. The reason is simple; We take hasty and irrational decisions when we are angry, depressed or greedy.

Allowing your emotions to affect your actions will set you back in your Forex trading. In The Ultimate Guide to Forex Profits, (get it for $7 here) we talk about the importance of setting a trading strategy and sticking to it - NO MATTER WHAT.

This is harder than it sounds. Just imagine you define your trading technique, and for days, all you see are losses. Are you telling me your emotions wouldn't get stirred up?

Alternatively, if you are seeing constant profits, would you not be swayed by greed to trade more money? This does not make you a bad trader, this makes you human. For this reason exactly, it is a smart tactic to remove the human factor from your trading. The way to do this is to automate your transactions. 

And the good news is that The Piptionary Club just launched an auto trading service to help you avoid making emotional mistakes and get profits automatically. The Piptionary Club traders perform technical analysis and decide when to open or close trades. And when you sign up for our auto copy service, you'll get these same well informed trading actions copied to your account in 50 milliseconds!

Our primary concern is to keep you on the winning side. Unlike Forex brokers, who occasionally profit from your loss, The Piptionary Club works for you and not against you. 

Another reason to use the Piptionary Club auto trading service is you can trade 24 hours a day, even when you are not near your computer. Imagine, you can be at a friend’s party and find out that you just made a huge profit! It’s kind of like the feeling you get when you find money in your pocket - multiplied by 100.

Let the Piptionary Club traders do all the work while you sit back and enjoy the fruit.

The Piptionary Club auto trade service can be a great trading tool for any Forex trader - no matter how experienced they are. However, our auto trade service offers the biggest advantage to new traders:

  • You don't need to know the market
  • You don't need to know how to read the charts
  • You don't need to know what a certain currency will do in the market today 

Essentially, you don't need to know anything about the Forex market, and you can become a very successful Forex trader. And the Piptionary Club traders have a proven track record. Check out our year-to-date results on MyFXBook:

Our traders have produced an 80% gain in the last six months with an average monthly gain of 12%. But we only have 100 spots available for this service. Once it fills up, you'll be placed on a waiting list and get in only if someone else decides to cancel. 

Sign Up Now, Secure Your Spot and Start Getting Profits on Auto Pilot.

A Complete Beginner’s Guide to Forex Profits

Foreign exchange (Forex) currency trading, the largest financial market in the world, requires a minimum of capital to invest and the profits can be substantial. Once you have learned the basics of Forex, you’re on the way to making money through the simultaneous buying or selling of currencies. Forex trading is instantaneous; as soon as you click the mouse, it’s done. The most commonly traded currencies, easiest to liquidate, are the U.S. dollar, Japanese yen, British pound, Swiss Franc, the Canadian dollar, Australian dollar, and the Euro.

Unlike the stock market, Forex trading has no central exchange.

With Forex, you can make a profit whether the market is up or down vs. only making money when the stock market is on the rise.

By taking the long position with a pair of currencies, the Forex trader buys at one price and sells when it reaches a higher price.

The other option for the Forex trader is to go short by selling currencies, anticipating depreciation, and then buying back when the value falls. The Forex trader can pick either direction, long or short, and if correct, he will generate a profit. You can also set up a certain point (limit order) based on the amount of profit you want to earn to automatically limit the order. In the same way, you can stop or close an order to automatically liquidate if the currency trade is going against you.

In general, the strength of a country’s economy determines the value of its currency. Other factors to take into consideration in Forex trading are the political and social status of the country, interest and employment rates, and the overall stability of its government. You will learn to see patterns or trends as you become more familiar with the in’s and out’s of Forex trading.

The Forex market is a 24-hour trading place, Sunday through Friday, giving you the option of trading at any time of the day or night. Unlike the stock market, it doesn’t close with the ringing of the bell.

Forex online firms provide demos, guidance, and market news for the beginning investor. You can practice your skills in Forex trading on a demo account before actually investing real capital. Once you’ve learned the basics, a minimum investment is made, sometimes as low as $200.00. These “mini-trading” accounts are a good way to begin Forex trading and often there is no commission attached to your trading. You don’t have to be a seasoned market analyst or economist to learn, enjoy, and make money with Forex currency trading.

5 Things Profitable Forex Traders Do That Unsuccessful Traders Ignore

How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.

Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24 hrs market, better execution, and others. Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.

Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of people who try their hand, but never get to the top.

Now that we know it is not easy to achieve consistent profitable results, a must question would be: Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results.

What we do know is that traders that reach the top think different. That’s right, they don’t follow the crowd, they are an independent part of the crowd.

A few things that separate the top traders from the rest are:

  • Education: They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.
  • Forex trading system: Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success
  • Price behavior: They have incorporated price behavior into their trading systems. They know price action has the last word.
  • Money management: Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.
  • Trading psychology: They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable outcomes, not just the winning side.

Money management is crucial Forex trading success.

These are, among others, the most important factors that influence the success rate of Forex traders.

We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results? It is different from trader to trader. For some, it could take a life time, and still don’t get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it’s not something you can do in a short period of time.

Trading successfully is no easy task; it is a process and could take years to achieve the desired results. There are a few things though every trader should take in consideration that could accelerate the process: having a trading system, using money management, education, being aware of psychological issues, discipline to follow your trading system and your trading plan, and others.

How to turn your Forex losses into profits...

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