Is there break-even trading on Forex?

The main task of any trader is to reduce the number of unprofitable transactions, and thereby increase the overall level of profit.

It should be noted that completely break-even Forex trading is practically impossible; you can only reduce possible losses to a minimum, thereby improving the overall financial result over a certain period of time.

In order to solve the problem, you should know exactly the main causes of losses when trading on the currency exchange, since it is much easier to prevent a problem from occurring than to correct it afterward.

Break-even Forex trading lies in a competent approach to risk management.

The risks are different, so for maximum effect you should consider all possible options.

How to Make Break-Even Forex Trading a Reality

I would immediately like to note the fact that completely break-even trading on the Forex exchange is practically impossible, but there are several reasons, the elimination of which can lead to a significant reduction in losses.

1. Wrong choice of trade direction , you opened a position, and the price immediately went against you. To prevent this from happening, you should clarify the direction of the prevailing trend before each opening of an order.

And open trades not in the direction of correction, but in the direction of the main trend; to identify it, open several windows of different time periods at once, this will allow you to get a more complete picture of what is currently happening in Forex. The principle of three screens works for almost any strategy.

2. Trend reversal , this can happen at any time, therefore, in order to minimize the size of losses, a stop loss should be set after each order opening. And after constantly moving it to the break-even zone, if desired, you can use trailing stop .

In addition, you should not forget about tracking the factors that cause such reversals and, at the first signals, close the deal yourself without waiting for stop orders to be triggered. Stop orders are the basis of any break-even Forex trading; the main thing is to correctly determine their parameters and not postpone placing them until later.

3. Technical problems - this group includes almost all troubles that disrupt the operation of software or equipment. Computers tend to freeze and connections disappear.

Therefore, if you trade significant amounts, do not be lazy to install a duplicate terminal on your phone or another computer, as well as write down the broker’s phone number and account access password.

It can be quite a shame when such a failure results in the loss of several thousand dollars, but you can prevent its occurrence by spending just a hundred dollars and a couple of hours of time.

4. Failure of orders - this is the reason why most losses most often occur; the established stop loss or pending order did not work, and now the deposit has already been drained.

The main reason for such troubles is price gaps, after which the stop loss is triggered at a price other than the one chosen when setting it. The same is true with pending orders.

Therefore, it is advisable to close positions when there is a high probability of risk of gaps; price gaps usually occur after weekends and holidays.

In addition to reducing losses, you can improve the financial results from exchange trading by increasing the profit from one transaction. To do this, you should take a more responsible approach to closing profitable transactions, closing such positions only after the maximum possible profit has been received.

To do this, you should move the take profit and stop loss behind the market. Replace the stop loss with a trailing stop as soon as possible, and move the take profit further if the existing trend continues.

Break-even trading on the Forex exchange can also be characterized as working on the Forex market without significant drawdowns of the deposit, the value of which exceeds more than 10% of the amount of funds in your account.

A similar result is achieved through the competent use of money management and compliance with all the above-mentioned transaction security measures.