Choose The Way of Limiting The Loss (Forex Trading)
The forex market is full of uncertainty. No one knows exactly where the market will move. When opening a trading position, the trader does not know where the price will move. Even though from the analysis, an ongoing trend may have been detected, but traders do not know that the trend will still continue or will end. It could be that the trade that is being carried out will be a loss. If left unchecked, the loss will end up getting bigger. Here's how to limit the losses traders can make:
Cut Loss
Cut loss is the act of closing a trading position to limit losses, which is done manually, that is, directly by the trader concerned. Cut loss is used to limit the losses experienced so that they do not cause even greater losses.
Switch
In trading, market conditions do not always move in accordance with what traders have predicted. It is possible that the position will move up and down and make the trader suffer losses. So that traders can still benefit from these circumstances, what traders must do is switch.
The switching strategy is widely used by traders in winning the market and getting a lot of profit. The switching method is defined as the activity of making changes or changes in direction by way of a closed position while it is still in a loss and then a new position is opened opposite of the closed position which was closed.
Watch the video below for full details!
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