Guide to Build a Trading Strategy Part II

The second important step in building a trading strategy is to calculate in an exact way the exit from the market. After entering a position, you should already have an exit strategy. The decision to exit a position may include variables such as duration, or if you do not want to stay in one position for more than 2 days regardless of whether you are in a position of profit or loss.

Their exit strategy may also be the basic price, ie the decision to close a position when you reach a certain level of profit or loss. But you can also use a combination of the two criteria mentioned above. And 'possible to implement other exit strategies, including those based on the use of technical and fundamental indicators, but the important thing to keep in mind is that an exit strategy should always be considered before entering a position .

In forex you can not put into practice improvisation, the goal is not to constantly invent and reinvent the role of traders and positions. If the goal is to become an expert trader in the currency market, you need to make a precise operational plan before entering the market and devote to it, according to what the plan says. In this way you will be on track to achieve the goal of profit.

When does Forex is also important to establish the right to use leverage. The lever is undoubtedly a fundamental part of any successful trading system. Knowing how to use leverage can make the difference between the gain or loss. The level of leverage that you want to use must always be predetermined before entering the position, it is essential to know better what to do at any time.

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