Translated from Russian by Google Translate
2 Сентябрь 2009

Effective ways to manage open positions

This is the feature of the currency market, that its constant dynamics and sufficiently frequent spikes pushed many traders to open positions. And quite often happens that these positions open up very lightly under the influence of emotions. Then many questions. Well, if you - an experienced trader who knows how to analyze the market and deal with psychological pressure exerted by other members. But what if you enter the market, with a projected course of events you do not live up to expectations? It is in these situations, remember that the FX market - is not roulette, and all actions must be clearly and pre-planned. Therefore, in this case to the forefront competent asset management forex.


If you look at developments in the foreign exchange market within a day, we can see that in most cases the situation is evolving very flowery and it happens that it is very difficult to predict. It is for this reason that seasoned traders are developing all sorts of schemes, in order to «untie this intraday ball». It is said that individuals rather successfully cope with this task. But what about the beginner who does not understand how to build asset management forex in the case of an incorrect position opening? Below we list the most salient points that need attention in order not to lose their money after the opening position.

1. Too long analysis of the open position can lead to the fact that the price may be very far away and you have to close the deal, capturing large losses. No need to build some kind of supernatural speculation. Even if you want to enter the market and at the same time deeply analyze this situation, then do it, at least, before the opening position. This asset management forex will be correct.

2. Use the trade of technical indicators. Many of them have their own characteristics, so you should pre-test each of them in order to find an indicator that more will meet your requirements and vision of trade. Classify the indicators according to their abilities and your method of trading deytelnosti. Use the basic elements, such as support and resistance levels. All traders were similar school currency dealing, so such elements are classic and can be used as a reliable source.

3. Determine in advance the timing of trade. You must follow only one strategy and sharpen its performance. For example, if you have an impressive capital and you have little free time, you can trade on the weekly chart, ie long-term basis. If you prefer to trade on the vibrations, then you should pay attention to the daily charts. In case you want to catch a short-term movement, then you might want to hourly charts. Thus, in this case, asset management forex closely linked to timeframes in which you execute a trade.

4. Try to act in time to the market. If you trade on daily charts, then keep in mind that the market should be a three-day cycle. If you stick to your position, you note the 21-day cycle. Find the pattern of receipt of impulsive jerks and use them to get ahead of the other participants.

5. It is obligatory to try to find signals that will validate your decision, or vice versa. These signals must be early. It is in this lies their value. Such signals may be obtained from the use of technical indicators, such as the intersection of faster moving average slower prompt a change in market sentiment. Analyze inter-currency pairs. They typically provide good signals. Early movement of one lets you know that soon the planned movement of the other pair.

6. Examine the nature of the appearance of a gap on the price chart. You must be clear about the principle of its occurrence and consequences. In some cases, the price returns and covers the distance of the broken, in some - continues to move in this direction. Analyzing the nature and features of future behavior of the price gap with respect to the currency pair, for which you execute a trade you make conclusions about the characteristics that are evident for this marketing tool. Therefore your asset management forex should in this case based on identified patterns of behavior of a gap in relation to a particular market instrument.

7. Be sure to note the features of the transfer position for the next day on a particular currency pair. Examine the data table in advance and figure out all the possible scenarios. You have to build its asset management forex or at the closing of open positions before moving it to the next day. Or, put into the current position to leave open. Keep in mind that for various currency pairs for the various features of the open position the threshold of profitability and losses will be different too.

8. Learn to recognize their mistakes. Do not be overconfident. If you see that the market continues to go against you, and there are no prerequisites to ensure that this trend will change in the short term, it is necessary to close the position. Fixing the loss, you may deprive the market opportunity to take you all. Very often it happens that initially the market makes a false movement or movement that will be the beginning of a long-term trends. Therefore the most important rule, which is based asset management Forex - is the ability to withdraw from unprofitable positions. Note that the FX market is very dynamic and you will still have a lot of opportunities to win back.