stop loss

In the dynamic world of forex trading, the quest for the most reliable strategy is a constant pursuit among traders seeking a competitive edge. Distinguished traders stand out through a unique approach - the top-down methodology. This strategic perspective involves delving into the broader market picture and identifying prevailing trends, primarily focusing on higher time frames in technical analysis.

Read more

Short selling, a distinctive trading approach, offers investors and traders the opportunity to profit from declining asset prices. The process, while less conventional than buying, entails borrowing shares from an exchange and subsequently selling them, with the goal of capitalizing on falling prices. As the asset's value diminishes, the trader repurchases it and returns the borrowed shares, resulting in a profit.

Read more

Day trading can be an exhilarating and potentially rewarding endeavor, attracting individuals seeking to profit from short-term market fluctuations. However, like any high-stakes venture, day trading comes with inherent risks, and one of the most crucial skills for a successful day trader is knowing how to cut losses effectively. Embracing the art of minimizing losses while maximizing gains is a fundamental aspect of profitable day trading.

Read more

Alan Hall Andrews is a rather famous trader, formerly engaged in the study of financial markets. One of the areas of his work was to find ways to determine the expected boundaries of the future trend by the first movement after the anticipated reversal. Andrews` pitchfork indicator appeared as a solution to this problem, this tool has become so popular that today it is included in the standard set of most trading terminals.

Read more

Almost all experienced traders of the forex market agree that it is necessary to set stop losses in any style of trading. Beginners, newcomers to the market, often neglect this rule, but with time they also come to understand it (or they simply stop trading because of the constant losses). Let's try to figure out why a Stop Loss is so important for successful trading and sustained profits.

Read more

Trailing Stop is an effective tool for flexible trading risk insurance. It allows a trader to gain maximum profit by changing the level of Stop Loss automatically. It can be used independently as a risk insurance tool and as an element of a strategy. Below you will learn what is a Trailing Stop, how to use it, what are the strategies for using it, what are the advantages and disadvantages of this tool and recommendations on trading with this risk insurance tool.

Read more

As in any other business, trading in financial markets often involves losses. And the first task of a trader is to learn to control these costs, making sure that returns are steadily greater than losses. To achieve this goal, the approach of limiting or holding losing positions is used. Let us find out which one is better and how to use them.

Read more

Currently, there are many proven, as well as quite controversial ways to conduct efficient trading. Position locking can be safely attributed to the second - controversial category. Trading systems using this method often receive contradictory reviews and are strongly criticized by representatives of both technical and fundamental analysis. Nevertheless, this trading methodology has been existing for many years and some traders managed to build beneficial trading strategies on its basis.

Read more

The black swan is difficult and sometimes impossible, to predict. And yet, if the markets are falling, it means that someone has started to sell. It means that someone is aware of the situation and decides to act, collapsing the markets. This "someone" is the largest banks, investment funds, insiders, and other "close" people and companies, and then the algorithmic robots, smaller funds, traders, and so on down the chain begin to sell. As a result, the global financial markets collapse.

Read more

We can recall dozens of examples of panics in the markets when in a few trading days with a loud chuckle whole states went into the mire of market volatility. In addition to recent events, these include, for example, the March 2020 panic sell-offs. Most of these events will only be remembered by encyclopedias, but some remain on the radar, usually with the epithet "black." For example, the Black Mondays of 1929 and 1987 in the U.S. stock market.

Read more