We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/59cdbPc4l7
  • The #Nikkei 225 trades at 4-month highs after a 50% surge from the March low, while the RSI registers its first overbought readings since November 2019. Get your market update from @DanielGMoss here: https://t.co/pOEt698Ooi https://t.co/EHD2EHmQLW
  • The British Pound technical outlook still seems to favor the downside. GBP/CAD may pressure key rising support from August as GBP/AUD could prolong its downtrend. GBP/CHF may fall. Get your $GBP market update from @ddubrovskyFX here: https://t.co/hBOpDKXmfW https://t.co/8gGfGuw87o
  • The $USD breakdown has taken the index into confluence support at the objective yearly open. Get your USD technical analysis from @MBForex here: https://t.co/A16XEv6n4d https://t.co/VFxFMFWJ5L
  • Texas virus cases increase 2.4%, above 7-day average of 2.3% - BBG
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.68% 🇨🇦CAD: 0.58% 🇬🇧GBP: 0.56% 🇪🇺EUR: -0.40% 🇯🇵JPY: -0.41% 🇨🇭CHF: -0.71% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/KqzhTKmnaK
  • The divergence between weekly gains in the #Fed balance sheet and with the #SP500 continues to grow https://t.co/A7HQRtukwj
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -1.11% Silver: -1.74% Gold: -1.78% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/oiiAzDSusO
Managing Stops Like a Professional

Managing Stops Like a Professional

2013-09-19 16:47:00
Walker England, Forex Trading Instructor
Share:

When developing a new strategy, many traders only focus on how to place their entries. While planning an entry is important, traders need to reserve time to focus on risk management. We often get so caught up in this process of entering into the market that we forget that once we enter into a trade, we then have to manage it.

  • Risk Management
  • Setting Stops
  • Market Example

The key to risk management lies in using a series of entry orders once we decide to enter into a new position. The first order everyone should become familiar with is a Stop order. A Stop order is a position set away from the market, designed to close out a trade if it moves against you. While no one intends to take a loss when they enter into the market, it is always a possibility. If you’re trading with a Stop, this allows you to exit a trade at a pre-determined point. This action will free your capital up to look for other trading opportunities.

Learn Forex – Entry Order Menu

Managing_Stops_Like_a_Professional_body_Picture_2.png, Managing Stops Like a Professional

(Created using FXCM’s Marketscope 2.0 charts)

Setting Stops

A Stop order is easy to manage through FXCMs Trading Station software. Stops can be set though the “Advanced” tab when creating an entry or market order. Once selected like the image above, traders can check the stop box then select the price for their order. Once this process is completed and your entry is executed, your stop will also be pending and waiting for execution. Once you are familiarized with how to place stops, traders should consider where to place them. Let’s look at an example.

Below we can see the USDCAD and its current downtrend. As price is decreasing with the trend, the current highs on the chart are moving lower as well. Traders looking to trade with the trend can set stops above the previous high. In the event that price exceeds this value, traders would at least temporarily assume that the trend has stalled. This is a great point to exit any existing positions and then look for other opportunities. As you can see, setting a stop order does not have to be a difficult process.

Learn Forex – USDCAD Downtrend

Managing_Stops_Like_a_Professional_body_Picture_1.png, Managing Stops Like a Professional

(Created using FXCM’s Marketscope 2.0 charts)

The example above is just one ways out of many that traders can use when selecting stop placements. It is important to understand that no single method of limiting risk is “better” than the other. The key is finding a method of exiting the market that is easily applied and repeatable so traders can stay consistent in their approach. That way when trades do go against, we don’t panic and exit the market as quickly as possible. Doing this will bring you one step closer to trading like a professional!

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list,CLICK HEREand enter in your email information

New to the FX market? Save hours in figuring out what FOREX trading is all about.

Take this free 20 minute “New to FX” course presented by DailyFX Education. In the course, you will learn about the basics of a FOREX transaction, what leverage is, and how to determine an appropriate amount of leverage for your trading.

Register HERE to start your FOREX learning now!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.