Stages of Forex transactions.

Forex trading can be roughly divided into several stages: opening a trade, maintaining it, and closing the transaction.

Most traders focus only on the first and last stages, relying on stop orders to maintain positions. This approach usually works, but paying extra attention to existing trades also doesn't hurt.

To understand the essence of each stage, it's important to clearly understand the objectives of each action.

Opening positions.

This is the most labor-intensive and time-consuming stage. An incorrect market entry point is often the cause of losses, so rushing is simply not appropriate.

A new position is opened if the following conditions are met:

1. The market has been analyzed, its current state and key prospects have been determined, forecasts have been made, and the most favorable entry points .

2. Entry signals have been received from technical indicators, a certain price level has been reached, and news has been released that has a strong impact on the trend. In other words, the expected event has occurred, and the market has responded accordingly.

3. The parameters under which the trade will be closed have been established.

Maintaining positions.

It might seem like a no-brainer—the stop order will be triggered anyway. But why lose even a few percent if you can adjust the situation?

1. Early closure of orders in the event of a sudden change in the market situation, such as news that will definitely change the trend direction.

2. Moving stops to the breakeven zone allows you to lock in any profits already made.

3. Monitoring the trading terminal and maintaining a connection to the server is also important, especially if you use a trailing stop .

Closing positions.

Trading may be terminated under the following conditions:

1. By time – if you are trading intraday, weekly, or only within a single session.

2. If a profit or loss threshold is reached, this rule can only be changed to increase profit, but the existing financial result must be secured.

3. The price has reached a significant level at which a reversal is more likely.

A serious approach to trading can significantly increase trading efficiency and prevent losses and deposit drawdowns .