The Importance Of Automating Your Trade Exits
The most common reason why traders fail is usually self-sabotage. Self-sabotage does not mean that they look to wantonly depreciate their funds. It rather refers to the fact that several traders do not allow their trades to reach their full potential and rather close them out prematurely. For novices who are engaged in forex trading in Nepal, it is vital to remember that trade exits are as crucial an aspect of trading as entering them. Improper trade exits can choke off one’s trading account and not let them grow to the level they were intended. How can this be addressed? The golden rule in forex trading is to let the market move the trader out of the trade rather exiting it yourself. What does this mean? And how can it be accomplished? The best moment to exit a market is at its pinnacle. Exiting on either side of the crest is an opportunity lost. Hence, traders should always look to exit the market only when it has no further upwards trajectory. While this is a valid idea,
executing it is always difficult. No forex trader can exit a market manually at the right moment. Hence, traders should make use of exit orders. What are take-profit orders? How are they useful? A take-profit order, or T/P, is a market order that is used to close a position when it reaches the profit target set for the trade. This order is set by a trader before they enter the forex market and it is executed immediately after the market reaches the target. This way, traders can limit the exposure of the position to the market. Using this tool in association with a Stop-Loss order can help traders net an assured profit and also allow them to leave the position un-monitored. The aforementioned statements reiterate why traders should never exit the markets manually and how setting take profit orders can help them maximize profits. However, setting an exit order without planning can either lead to premature exits or reduce the profits that traders can make. Hence, for traders who are taking up online trading, it is vital to partner with the best forex brokers in Nepal like WesternFX as they can offer the requisite guidance to tackle such challenges.