Support of open positions in exchange trading
At first glance, it seems that trading on the stock exchange is not at all difficult; it could be simpler - buy cheaper, sell more expensive.
But in fact, when trading on exchanges, it is necessary not only to open and close a position, but also to maintain it.
Why do you need to accompany an open order if it is possible to set stop orders that will work under the given parameters?
You need to maintain a position in order to improve the financial result of an existing transaction, make a decision to close it early, or increase the likely profit by moving the take profit.
For example, you opened an order with both a stop-loss and take-profit , and while the trade was open, the situation improved and the price approached the take-profit level. So why close the position? You can simply move your stop orders and maximize your profit:
Methods of maintaining open positions
Based on technical analysis —analyzing changes occurring on the currency pair's chart. The analysis is conducted using established indicators that track changes in the existing trend.
You don't have to be in front of the trading platform screen all the time; you can install scripts with a signal function that will send a message about a trend reversal to your email or phone.
After that, all you have to do is make a decision in accordance with the changing market situation:
Based on fundamental analysis – that is, based on news that affects the asset for which you have an open trade.
For example, you bought futures , but then news broke about an increase in oil production quotas. Such a news item is almost guaranteed to cause the price to drop. Why wait for a stop-loss to be triggered when you can close the trade with a smaller loss?
That is, in this case, you control the news on your asset and make decisions based on events that affect the price of the asset in which the position is open.
It is clear that the ideal option would be one in which you use both technical and fundamental analysis simultaneously.
The main thing is to react correctly to the changing situation:
• Move the stop loss to the breakeven zone, while increasing the take profit
• Close the trade completely or partially
• Replace the stop loss with a trailing stop
It's also a good idea to assess the situation before a long weekend, comparing the likely profit with the amount of swap fees accrued over the weekend. Then, decide whether to leave the order open over the weekend.
It's safe to say that managing your stock market positions isn't difficult; you just need to keep an eye on your trades and constantly monitor the news.
