Stages of Forex transactions.

Forex trading can be divided into several stages - opening a transaction, maintaining it and completing the transaction.

Most traders pay attention only to the first and last stages, entrusting the maintenance of positions to stop orders.

Usually this scheme works, but still, additional attention to existing deals won’t hurt either. In order to understand the essence of each stage, you should clearly understand what tasks each action poses to the trader.

Opening positions.

This is the most labor-intensive and time-consuming stage; it is the wrong entry point into the market that most often causes losses, so haste is simply not appropriate here.

And so, a new position is opened if the following conditions are met:

1. The market has been analyzed and its condition and main prospects have been determined, forecasts have been made and the most successful entry points .

2. Entry signals have been received from technical indicators, a certain price level has been reached, news has come out that has a strong impact on the trend.

That is, an event occurred that you were waiting for and the market reacted to it accordingly. 3. The parameters under which the transaction will be closed have been established.

Maintaining positions.

It would seem that what’s wrong with this, a stop order will still work, but why lose even a couple of percent if you can correct the situation.

1. Closing orders early in the event of a sharp change in the market situation, for example, news has come out that will definitely change the direction of the trend.

2. Moving stops to the break-even zone allows you to fix the profit already received.

3. Monitoring the operation of the trading terminal and the availability of communication with the server is also not an unimportant point, especially if you use trailing stop .

Closing positions.

Trading may be terminated if the following conditions occur:

1. By time - if you are conducting intraday, weekly trading or working exclusively within one session.

2. When the limit level of profit or loss is reached, this rule can only be changed in the direction of increasing profit, and the existing financial result must be recorded.

3. The price has reached an important level at which the probability of a reversal increases.

A serious approach to trading can significantly increase trading efficiency and prevent loss and drawdown of the deposit .