Does forex close your trade if youre in the profits ever?

The only way you can guarantee the profit that you have accumulated so far is if you close your trade right now. So, more cautious traders might close their trade then and there – they don’t want to risk what they already have. More risky traders might keep it open.


Is forex trading a profitable business?

When approached as a business, forex trading can be profitable and rewarding, but reaching a level of success is extremely challenging and can take a long time.

How to trade Forex with a stop loss?

Keep your stop slightly below the previous day’s low and let the trade run until the market closes your trade for you. Alternatively, simply set your stop to track the 8 day EMA – this will keep your stop at a reasonable level below the current price until the trend reverses. However, if you do this, keep a lookout for opposing price action.

How do you know when to exit a trade in forex?

There are many different strategies you can use to tell you when to exit your trades in Forex trading. Using trailing stops or time-based exits are two good and popular exit strategies. When can you enter and exit day trading?

Can you lose money unnecessary when trading Forex?

In both cases, however, you can lose money unnecessarily, whether by trying to ride out a losing trade in hopes it will “turn around on you” or by getting out early at a small loss, only to see price retrace and then go on to a big win.

Do forex trade close automatically?

In forex trading, a Stop Out Level is when your Margin Level falls to a specific percentage (%) level in which one or all of your open positions are closed automatically (“liquidated”) by your broker. This liquidation happens because the trading account can no longer support the open positions due to a lack of margin.

How long can you keep a forex trade open?

As a general rule, there is no limit to how long you can keep a trade open. Some brokers might put limits, but any reputable Forex brokers won’t. As long as there is a market, theoretically, you could keep your trade open forever.

What happens when forex market closes while trading?

Drawbacks to Trading When a Currency’s Market Is Closed At market close, a number of trading positions are being closed, which can create volatility in the currency markets and cause prices to move erratically. The same can be the case when markets open.

Is Forex profitable long term?

How profitable is a long-term investment in forex trading? As with anything, investing in the long-term can be highly profitable. This doesn’t mean that it is without risk, however, and you should never risk investing more than you can afford to lose.

What happens when I leave my forex position open overnight?

In Forex, when you keep a position open through the end of the trading day, you will either be paid or charged interest on that position, depending on the underlying interest rates of the two currencies in the pair.

Do forex contracts expire?

Forex options trade over-the-counter (OTC), and traders can choose prices and expiration dates which suit their hedging or profit strategy needs. Unlike futures, where the trader must fulfill the terms of the contract, options traders do not have that obligation at expiration.

What happens when you hold a forex trade over the weekend?

At 5 pm EST on Friday the forex market closes and doesn’t reopen until 5 pm EST on Sunday. This creates the opportunity for price gaps—when the opening price on Sunday is significantly different than it was at the Friday close.

What do traders do on weekends?

Bear in mind that trading on a weekend includes much more than simply being able to place a trade. Many traders use weekends to analyse the market, look for trading opportunities and fine-tune their strategies, only to place a trade once the market opens on Sunday (Forex) or Monday (stocks).

Can I trade forex during weekends?

Trading on Forex on Friday is possible and necessary, but at the same time, you should remember some issues that can protect your deposit from unwanted losses. You can also leave trades open for the weekend, but consider some points that we will discuss next.

Can forex make you a millionaire?

Forex trading may make you rich if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.

Is forex a gamble?

Forex is gambling in a business sense of way,but its not the same as betting in casinos,because in forex you invest you don’t bet.

Can you hold for long term on forex?

In the forex market, a trader can hold a position for as long as a few minutes to a few years. Depending on the goal, a trader can take a position based on the fundamental economic trends in one country versus another.

Why do forex traders close positions?

Often, they let emotion take hold, either closing out a position when they shouldn’t because they are scared, or holding on for more profits because of greed and losing everything in the process. It’s important to remember that you should …

How long does it take to master trading?

Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

What is a strong signal for you to take your profits?

However, if you do this, keep a lookout for opposing price action. A strong signal such as a large bearish pin bar in a rising market is a signal for you to take your profits. Similarly, keep a lookout for support and resistance levels – if you have already made significant profits, there is no reason to take risks.

Is it good to make a huge profit on an open position?

Having a huge profit on an open position is a good feeling, but your decision on what to do next shouldn’t take into account how much profit you have made already – don’t count your money and use this as the basis of your decision.

Is price action a good indicator?

On the other hand, price action can also be a good indicator that you should stay in the market. Again, if you are riding a trend and it starts to flatten out, you may be tempted to exit – and perhaps you should.

ICT – Smart Money Concepts and the flawed logic behind it

This Post is NOT there to bash or to make fun of People that Trade the so called “SMC”, but rather to make People realise that they are not trading like the Banks or Institutionals do and they are not trading any different from the so called “retail traders”.

I work 12 hour night shifts. How can I trade around this?

Need answers please and not “it’s impossible”. I’m determined to do this. Thanks.

Why is forex trading important?

As with any business, forex trading incurs expenses, losses, taxes, risk and uncertainty.

What should I learn about forex?

While the majority of trading knowledge comes from live trading and experience, a trader should learn everything about the forex markets, including the geopolitical and economic factors that affect a trader’s preferred currencies .

Why do we need a trading journal?

A trading journal is an effective way to learn from both losses and successes in forex trading. Keeping a record of trading activity containing dates, instruments, profits, losses, and, perhaps most important, the trader’s own performance and emotions can be incredibly beneficial to growing as a successful trader.

Why is leverage important in forex?

One reason forex appeals to active traders is the opportunity to make potentially large profits with a very small investment— sometimes as little as $50. Properly used, leverage does provide the potential for growth. But leverage can just as easily amplify losses.

How to avoid losing money in foreign exchange?

In order to avoid losing money in foreign exchange, do your homework and look for a reputable broker. Use a practice account before you go live and be sure to keep analysis techniques to a minimum in order for them to be effective. It’s important to use proper money management techniques and to start small when you go live.

Why is it important to have trailing stops?

While traders should have plans to limit losses, it is equally essential to protect profits. Money management techniques such as utilizing trailing stops (a stop order that can be set at a defined percentage away from a security’s current market price) can help preserve winnings while still giving a trade room to grow.

Can leverage amplify losses?

But leverage can just as easily amplify losses. A trader can control the amount of leverage used by basing position size on the account balance. For example, if a trader has $10,000 in a forex account, a $100,000 position (one standard lot) would utilize 10:1 leverage.

Why do traders exit trades early?

The most common reason traders exit trades too early is that they simply don’t really know what they’re doing. They are trading with real money before actually having developed a concept of what their overall trading approach is and how to properly function in the market in regards to entries, exits and trade management.

How to avoid exiting trades too early?

The best way to avoid exiting trades too early is to have a trading plan that lays out your trade exit strategy and then sticking to it, no matter what. You will need to understand why set and forget trading is so powerful and be able to walk away from the market when your trades are live.

What is trading psychology?

Trading Psychology (mindset) Not having the right mindset about trading and not understanding key realities of how markets move, is something that will definitely contribute to exiting trades too early.

What is trading success?

Trading success is the result of focusing on trading performance; being consistent and doing all the little things right day in and day out so that there are no huge swings in your equity curve. Once you truly accept these things your mindset will be much closer to where it needs to be to become a successful trader. 4.

How does mindset affect trading?

Your mindset influences your habits and your habits essentially are what make or break you in the market. So, it all starts with having and maintaining the proper trading mindset. You’ve got to accept that slow and steady wins the race and that a low frequency trading approach is how you making money “fast”.

What does it mean when a trader is poor?

Many traders come into the market almost expecting it to not work out for them. They think self-deprecating things like “Well, I’ve always been poor so I will probably keep being poor”, especially after they have a losing trade or two. You cannot let negative thoughts infect your mindset or they will lead to negative emotions and poor trading habits that result in more losing!

What does exiting a trade at a partial loss mean?

Exiting a standard trade at a partial loss for whatever reason you can come up with, well before the stop loss is reached, only to watch the trade go on to be a winner. Inability to pyramid into positions (add to winning positions), and constantly exiting these larger positions, fearing the market will reverse.

What happens if the market has formed a huge pin bar reversal against your position but you are still

If the market has formed a huge pin bar reversal against your position but you are still up about two times your risk…then it probably makes sense to close that trade out manually and take the profit, because you have a valid price action-based reason to do so.

Why is it important to think about stop losses?

Thus, it’s important to start thinking about stop losses as a critical component to your overall trade exit strategy, because how you manage losses and risk will decide whether or not you make consistent money in the market.

Why is it bad to move your target further out?

Even if the market DOES keep going in your favor after you moved your target further out, it’s still a bad habit to develop because it means you are reacting emotionally to what the market is doing rather than preempting your actions in the market and acting objectively.

Should you move a stop loss or close a trade out manually?

As with profit targets, you really should only move a stop loss or close a trade out manually for a loss if there’s a valid price action based reason to do so. Note: You should NEVER move your stop loss further away from your entry point, no matter what.

Do you have to be totally rigid to trade?

Basically, you don ’t need to be totally “rigid” by always either taking a 1:2 or 1:3 risk reward (or some other pre-set reward) or no reward at all. Sometimes, it does make sense to close a trade out with a smaller profit if there’s price action telling you to do so…even if you haven’t reached a 2R or more profit.

Do you have to be emotional with stop loss?

You also need to be flexible but not emotional with your stop losses. You can be a little bit more rigid with stop losses than with profit targets. Meaning, with stop losses, it makes more sense to let the market take you out by moving down or up into your stop loss, that way you give the trade the maximum possible chance of moving in your favor.

Can you rely on luck in trading?

You cannot rely on luck in trading, eventually your luck will run out, probably when you need it the most. Thus, essentially what I’m saying here is that you need to stop moving your profit targets away only because the market is getting close to hitting them.

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