The most important aspect of Forex trading is not a taking, profit but How to rescue a losing position. we read the lot about profitable trading systems , strategies, technique and formulas. The material about rescuing the position is relatively less available, though there is some good work is available on this part of Forex trading too.
The very time when the trader enters into the trade position all initiative is the shift to market. After trade entry trade has only one choice that is the time of closing the position, either he put some stop loss/take profit order or manage the position manually. It depends upon one's trading plan. we will discuss what we will do if after all homework and trading plan a position is going against our expected direction.
There are two main reasons for losing position i.e wrongly timed entry or entry against the trend. It is important to understand the trend of the currency pair for the time frame which you are trading for, A simple rule of thumb is traded with the major trend direction. There is the high risk of more loss during the rescue of wrong trend direction entries so it is batter to take the initial loss on that type of e…
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