The Most Effective and Dangerous Trading Tactics
Currently, there are a variety of trading tactics that can, to varying degrees, make Forex trading more effective.
Clearly, not all techniques yield the same results, and some can lead to wasted funds or even losses.
The key is to quickly distinguish profitable tactics from dangerous ones and avoid using them in your trading. This is quite difficult, as many dangerous tactics are advertised as the most profitable.
Therefore, those that can be used without significant 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 means you don't risk all your funds at once, but open your first position with a margin of half your deposit or less.
If you make a profit on the first position, you open another trade in the same direction. If the first order is unsuccessful, your losses will be significantly smaller.
Partial closing means you don't 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 that can help you lose your deposit or incur losses:
- Martinguela
- Deposit acceleration
- Locking
The Martingale tactic has gained its popularity due to its ease of use: open a losing position, then 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 because they constantly miscalculate the trend direction and end up in corrections.
Accelerating a deposit is a dream come true for any Forex beginner, as using this tactic, you can turn a thousand dollars into a hundred thousand - http://time-forex.com/taktik/razgon-depozita
Unfortunately, the only officially recorded successful case of this tactic was Larry Williams, who managed to turn ten thousand into a million in a year. In most cases, such experiments end in failure.
locking is promoted as a way to reduce losses, in practice it is quite difficult to determine which trade to close. Even after closing, no one guarantees a high profit.
It should be noted that the effectiveness of any given tactic depends primarily on the person using it. The same tactic can produce completely different results for different traders.
