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.
stop loss and take profit orders at once , during the existence of the transaction the situation changed for the better and the price approached the take profit level. So why close the position, you can simply move our stop orders and get the maximum profit:
Methods for maintaining open positions
Based on technical analysis - analyzing what changes occur on the chart of a currency pair. The analysis is carried out using established indicators that monitor changes in the existing trend.
In this case, it is not at all necessary to constantly be in front of the trading platform screen; you can install scripts that have a signal function, and they will send a message about a trend reversal to email or phone.
After this, all you have to do is make a decision in accordance with changes in the market situation:
Based on fundamental analysis - that is, based on news that affects the asset for which you have an open transaction.
For example, you made a purchase futures , but then news appeared about an increase in oil production quotas. Such a message is almost guaranteed to lead to a price drop; why wait for the stop loss to be triggered if you can close the deal 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 rate of the asset for which the position is opened.
It is clear that the ideal option would be one in which you use both technical and fundamental analysis at the same time.
The main thing is to react correctly to changing situations:
• Move the stop loss to the zone without loss, while increasing the take profit
• Close the transaction in whole or in part
• Replace the stop loss with a trailing stop
It would also be a good idea to assess the situation before the long weekend, and you need to compare the likely profit and the amount of swap commissions accrued over the weekend. Then decide whether to leave the order for the weekend.
We can say that there is nothing complicated in maintaining exchange positions; you just need not to leave transactions unattended and constantly monitor the news.