When you negotiate on the foreign exchange market, preparation is only half the battle. The execution is the other half. In the field of forex trading, the management of open positions is, in fact, just as important as the plan. To help you better manage your trading assets, here are three tips.
Get connected with the market
Whether you are a lover of technical analysis or fundamental analysis, you can’t deny that economic reports greatly influence the prices of currency pairs. Therefore, it is important to keep an eye on events that could pose a risk to your positions. Please be aware that according to some traders, the reaction to the news of economic is even more important than the news itself.
Be flexible with your trading plan
To succeed on the foreign exchange market, it is important to be flexible with his trading plan. This does not mean that we should not follow it to the letter, it simply means to be able to make adjustments when some factors have changed. To be flexible means to continuously check the validity of configurations of the trading as time goes on.
Update your orders and the size of your positions
This is not because you have found the best risk/return ratio and the trading plan infallible as you do not need to change some of the settings, including the level of order and size of positions, from time to time. Since the idea is to reduce the risks, if one or two factors of your trading plan is not going in the direction that you expected but you think that your original idea is still worth, may be it is simply to reduce the size of your positions. As another example, if you find that the action of the price was better than expected, it may be time to adjust your stop loss or take profits. Of course, it is better to have anticipated these changes in his trading plan initial but if this is not the case, better late than never !
By applying these three tips, you will greatly increase the profit potential of your open positions.