The most effective and dangerous trading tactics
At the moment, there are a lot of different trading tactics that can make Forex trading more effective to one degree or another.
It is clear that not all methods of work give the same result, and some lead to the loss of the deposit or cause losses.
The main thing is to distinguish profitable tactics from dangerous ones in time and not to use them in your robot; this is quite difficult to do, since many of the dangerous tactics are advertised as the most profitable.
And so, those that can be used without much risk include:
- Pending orders
- Addition
- Partial closure
Thanks to the capabilities of a modern trader’s terminal, you can plan not only the price at which an order will be opened, but also the profit at which it will be closed, as well as the degree of risk.
Adding positions - you do not risk all your available funds at once, but open the first position with a margin of half the deposit or even less.
When a profit is made on the first position, another transaction is opened in the same direction.
If the first order was not successful, then the losses will be several times smaller. Partial closing - you do not always have to completely close a profitable trade; you can close only half of the position, while the remaining order will continue to generate profit.
This option is described in detail here - http://time-forex.com/taktik/chast-zakrytie-pozicii
Tactics through which you can lose your deposit or incur losses:
- Martinguel
- Deposit acceleration
- Locking
The Martingale tactic has gained its popularity due to its ease of use - open a losing position, open the next one with twice the volume - http://time-forex.com/terminy/martingale-1
As a result, the trader trades at random, accumulating losses, since he constantly does not guess the direction of the trend, then ends up in a correction.
Accelerating a deposit is the realization of the dream of any beginner in Forex, because using this tactic you can make a hundred thousand out of a thousand dollars - http://time-forex.com/taktik/razgon-depozita
Unfortunately, the only officially registered successful case of using this tactic was trading Larry Williams, who was able to turn ten thousand into a million in a year.
In most cases, such experiments end in failure. Locking , although positioned as reducing losses, in practice it is quite difficult to decide on the choice of transaction that should be closed as a result.
And even after closing, no one guarantees high profits. It should be noted that the effectiveness of a particular tactic primarily depends on who uses it. For different traders, the same tactics can give completely opposite results.