Forex trading tactics

Like any other endeavor, stock trading requires a plan of action that outlines all
the key aspects of trading. These are the foundation of profitable trading and prevent you from losing your deposit.

Forex tactics are an integral part of a trading strategy. While a strategy covers only general aspects, tactics focus on the details—though there are no details in forex trading.

In our case, this discipline encompasses all the preparatory aspects of trading and also regulates the key performance indicators.

This includes calculating the optimal trade size, the maximum loss and profit that will be reached when the order is closed, and methods for securing profits.

1. Calculating the trade volume – When using any forex strategy, you must determine the amount you will trade relative to your deposit, i.e., choose the optimal lot size.

Having some experience trading on the forex market, I'd like to point out that the following pattern is usually observed: the larger a trader's deposit, the less leverage they use, thereby significantly increasing the trading timeframe.

Initially, like most beginners, I tried to trade large volumes, which resulted in me being forced to close trades at the first sign of a correction.

After unsuccessful attempts to make a profit, I reduced this ratio. Now, with a deposit of $3,000, I trade with a volume of only 0.1 lots. While the profit per trade has decreased significantly, losing trades have also virtually disappeared, making it possible to achieve a stable profit of 20% by the end of the month.

When trading small amounts, you can use another approach: maximum leverage of 1:100 or 1:200 and constant withdrawal of profits, while maintaining a certain amount of funds in the account.

Regardless of which strategy you use, first determine the volume of your transactions.

2. Position closing tactics : before starting a trade, you should set a level at which you will close the trade, especially for losing orders. Therefore, a profitable position should be held for as long as possible.

With cautious trading, this level is from 2 to 5 percent, and with scalping, no more than 20%.

This psychological factor will prevent you from losing your entire deposit; this value serves as the basis for setting a stop-loss order.

3. Forex Profit-taking Tactics – Ways to Close Profitable Positions. You can close profitable positions using the following methods: manually, with a take-profit order, by moving the stop-loss to the breakeven zone, or by setting a trailing stop.

The choice depends on your trading approach. For example, setting a trailing stop requires a constantly running trading terminal, while manual trading requires constant monitoring of the trade.

The Forex tactic you choose should be compatible with your trading strategy; only then will you have a chance of achieving the maximum financial result.