Search
0
0
Using Stops effectively
Mon, Jun 16 2008, 10:41 GMT
by Forex Journal's Collaborators
This article is taken from the Forex Journal (May 2008 issue).
The author, Sunil Mangwani is a Physics graduate with a Diploma in Financial Management.
He has been trading the Forex market for the last 6 years and devises simple trading strategies based on his vast knowledge and in-depth study in the field of technical analysis. Sunil Mangwani will be key speaker at the FXstreet.com International Traders Conference in 2008 October 29-31 - Barcelona (Spain)
- Sunil Mangwani leads a discussion on methods to effectively use stops to preserve trading capital. In this article, he outlines ways to use the pivot point formulas as stop placement zones when trading Forex markets.
The first priority of a trader is to conserve trading capital.
The trader’s capital is his bloodline. Without capital, it is not possible to trade, so preserving it becomes a matter of utmost importance.
It is only natural that when a trade is initiated, the focus tends to be on potential profits rather than on the possibility of loss. We are usually so convinced that a trade will be profitable, that we tend to ignore the possible losses that would occur should the trade go wrong. One must accept that losses in trading are inevitable, but a successful trader is one who manages and controls the losses.
_______________
Other Article in this issue:
Published on Mon, Jun 16 2008, 10:41 GMT
DPR International Pte Ltd
| One Raffles Place, OUB Centre #18-01, Singapore 048616
http://www.forexjournal.com/ | editor@forexjournal.com
Legal disclaimer and risk disclosure
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the authors and the publisher are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. In commodity trading, as in stock, and mutual fund trading, there can be no assurance of profit. Losses can and do occur. As with any investment, you should carefully consider your suitability to trade and your ability to bear the financial risk of losing your entire investment. It should not be assured that the methods, techniques, or indicators presented in this magazine will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples in this magazine are for educational purposes only. This is not a solicitation for any order to buy and sell. The information contained herein has been obtained from sources believed to be reliable, but cannot be guaranteed as to accuracy of completeness, and is subject to change without notice. The risk of using any trading method rests with the user.Related reports
Lessons from the Pros - Markets and Market Timing by Online Trading Academy
Wed, Nov 19 2008, 06:18 GMT
Forex Essentials Course: 21 lessons to get started in Forex - Introduction: Getting Started In Forex by LearningMarkets.com
Tue, Nov 18 2008, 17:39 GMT
Trading Ranges − ITC 2008 presentation by Odom & Frey Futures, FOREX & Options
Wed, Nov 12 2008, 11:27 GMT
Lessons from the Pros - Gaps, The Novice Trader Exposed… by Online Trading Academy
Wed, Nov 12 2008, 05:57 GMT
Important Things to know about your Currencies by The Forex Journal
Tue, Nov 11 2008, 16:36 GMT
Related content
TOPWRAP 1-Weak Japan data adds to recession fears,shares dip
Thomson Financial News | Thu, Oct 23 2008, 04:46 GMT
China, Singapore sign free-trade pact
Thomson Financial News | Thu, Oct 23 2008, 04:14 GMT
Australia says on track for China free-trade pact
Thomson Financial News | Tue, Oct 21 2008, 03:55 GMT
Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.