Foreign Exchange Tips to Boost Your Profits

Of course, all traders know that you must set a limit order or at a minimum include a profit aim or closing signal in your plan and keep to it. Either you are aiming for a certain number of pips or you are waiting for something like an oversold or overbought signal and then close instantly.

There are many options for the positioning of the new stop and it is an excellent idea to back test these for your special system. First option, if your stop was initially 20 pips out from your opening position, it now moves to twenty pips from the price at which you simply closed half the order. 2nd option, your stop moves to your entry position plus or minus the spread. So if the trend now turns on you, you will have a decent profit on the 1st half of your trade and break even on the second half. What’s best is dependent upon the first position of your stop. Naturally you do not need to move it so close to the current price that it’s triggered too fast.

Equally, never be tempted to apply this method to a loss-making trade. It would be a gigantic mistake to only close 1/2 a trade when it hit your stop, unless you are testing different positions for the stop.