Forex Trading: Taking a Profit

Tue, 19 Aug 2008 08:45:30 -0400

Exiting a currency trading position while you are aheadOne of the important things to understand when you are forex trading is proper exit strategy. One way of doing this is through taking profit.

When taking a profit, you go ahead and exit a currency trading position while you are ahead -- when you have a profit. You can do this by arranging a profit target, or by executing a trailing stop.

While taking a profit can limit large gains in forex trading, it does help limit the risk of loss.

Forex Trading: Exit Strategy

Mon, 18 Aug 2008 07:39:45 -0400

The importance of knowing when to exit your currency positionsOne of the important things to learn when it comes to forex trading is exit strategy. Part of successful FX trading is knowing when to exit your currency positions.

Forex Strategy Secrets offers a brief overview of four different types of exit strategy you can use:

Profit target: You exit when you have reached your desired profitability in currency positions.
Trailing stop: You exit when the market begins to turn against you, but you still have a profit (even if it may not be your target).
Stop loss: You have no gains, and you exit currency positions in order to limit the damage.
Time-based stop: You set a specific time to exit currency positions. This can also include exiting at a certain level.

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Forex Trading: Taking a Profit

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Forex Trading: Exit Strategy

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