How long are positions maintained?

[Nirmala]

Approximately 80% of all forex trades last seven days or less, while more than 40% last fewer than two days. As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds.

[adria]

Nice tip. Breakeven stop is a type where you place a new stop at a price which will guarantee that in the worse case scenario you will not lose money on this trade. You have to remember to take into account the spread that you paid your broker.

Let's say you entered a trade at 1.4000 and your spread was 3 pip. Let's also say that the market price is now 1.4020. You can bring your stop to 1.4003 which means that if the market turns against you it will results in a breakeven trade at the worse.

[Egwig]

Originally Posted by adria

Nice tip. Breakeven stop is a type where you place a new stop at a price which will guarantee that in the worse case scenario you will not lose money on this trade. You have to remember to take into account the spread that you paid your broker.

Let's say you entered a trade at 1.4000 and your spread was 3 pip. Let's also say that the market price is now 1.4020. You can bring your stop to 1.4003 which means that if the market turns against you it will results in a breakeven trade at the worse.

It is considered courteous to acknowledge the author when directly quoting their work from another site.
Like this:-

Quoted from John Drummond,

" fxtradingtip | August 26, 2009

http://ForexAutopilotSystem.org -
Forex Exit Strategy - 4 Types of Exit Strategies
Whenever you enter into a Forex trade of any kind, the first thing you have to make sure is that you have your exit strategy planned out regardless of whether the trade ends up a winner or a loser. Knowing how to manage your money and trades is the single most important thing about trading the Forex market. Without an exit strategy, you're asking for trouble.

There are 4 types of exit strategies that you should know about and employ in your trades:

1. The Initial Stop (also known as a Stop Loss) is placed when you enter the trade. This stop is meant to limit your potential loss. This is the most important exit strategy there is. Never trade without an initial stop.

2. Take Profit Stop - You should always employ a Take Profit Stop. This indicates the maximum profit you plan on taking out of a trade. Even though you may see the market continue to go in your direction after you've exited the trade, having a Take Profit stop will make it unnecessary for you to constantly monitor the trade.

3. Trailing Stop - A Trailing Stop happens when your trade is winning and you want to change your initial stop to safeguard your profits. For instance, let's say you had an initial stop of 10 pips below entry price. Then, you find yourself 20 pips in profit and your Take Profit stop has not been activated yet. Now, you bring your stop to 10 pips below current price. This means that worse comes to worse, you will exit this trade with 10 pips in profit. The Trailing Stop travels with the current market price to help you secure more and more profits.

4. Breakeven stop - This is a type of Trailing Stop where you place a new stop at a price which will guarantee that in the worse case scenario you will not lose money on this trade. You have to remember to take into account the spread that you paid your broker.

Let's say you entered a trade at 1.4000 and your spread was 3 pip. Let's also say that the market price is now 1.4020. You can bring your stop to 1.4003 which means that if the market turns against you it will results in a breakeven trade at the worse.

These Forex exit strategies are something which you have to employ. They will help reduce risk and secure profit. They will make you more money.
Forex Systems and ebooks Reviews"
John Drummond


Egwig :cool::cool:

[shirley]

As a general rule, a position is kept open until one of the following occurs:
1) Realization of sufficient profits from a position;
2) The specified stop-loss is triggered;
3) Another position that has a better potential appears and you need these funds.

[jakewalker]

Thank you guys for the experience. Will try everything. Oh, by the way, if you are interested in my experience – I can share it with you. I'm using a robot for trading, as others do. But I've heard that there are a lot of problems with installing them, so, there are some hints in my signature about how to install it. Try one of them - just try and make your decision. Have a nice day!

[jason]

Originally Posted by adria

Nice tip. Breakeven stop is a type where you place a new stop at a price which will guarantee that in the worse case scenario you will not lose money on this trade. You have to remember to take into account the spread that you paid your broker.

Let's say you entered a trade at 1.4000 and your spread was 3 pip. Let's also say that the market price is now 1.4020. You can bring your stop to 1.4003 which means that if the market turns against you it will results in a breakeven trade at the worse.

I agree with you.

Break Even Stop is a type of risk management technique where the market price move by a pre-defined levels, you will place a new stop loss at the entry price which will guarantee that in the worse case scenario you will not lose money on this trade.

[jackie101]

Defensive FX Trading includes using break even stop after a predetermined take profit level is achieved. The action of shifted initial stop loss to entry price is called break even stop. This means which ever the direction the market decides to move, the risk after implementing a break even stop is zero loss.

While using a break even stop, a forex trader can also execute partial close when the first take profit level is achieved. This means that he can close 50% of his contract and can extract a small profit out of the market.

[shirley]

Break even stop loss is a preset price at which a trader exits a position in a financial market. Usually this price covers the trader's costs and includes a certain level of profit.

[jason]

Having trades that are break-even, or 0 (zero) on the profit and loss register or reasonably near that range, is actually a very good outcome. Foremost among its benefits is it allows one to keep intact the capital at risk for another and perhaps better trade. Breaking even may not elicit the praise of others but it is a sustaining event. How you get to break even is also important.

[shirley]

First, you can hold a short position in stock as long as you want.

Second, you can hold a forex position as long as you want.

They let you leverage 100:1 because they feel it’s safe for them to let you do this. It doesn’t mean it’s a good idea and I never run my positions with that much leverage.

[goldie123]

The length of time in which a trade needs to be maintained has nothing to do with the passage of time. After all, who knows where the trade will be in a week's time? You may be holding a losing position or on the verge of acquiring even higher profits. You may be about to exit the trade at the worse possible time.

[unclegober]

How long do we maintain trading depends on the methods we use to make trades. Now I try to use scalping method in Armada Markets broker, this method requires the execution speed and low spreads so of course we have to choose the right broker. Scalping method is very suitable for me to apply in this broker because this broker perovide me the spreads as low as 0.0 pips; no re-quotes, delays nor interventions; scalping, EAs and news trading allowed; STP, DMA and NDD; Leverage up to 1:500; trade from 0.01 lot; minimum deposit 50 EUR/USD/GBP/PLN provide me the comfort to trade with my style without worried