Limit the risk

TIP: Limit the risk

How often do you happen to open a position and it makes 10 or 15 pips in your direction and then returns to your stop? In fact, one of the first rules we need to learn is trying to limit the losses. There is nothing wrong with them. This is the cost to do business, but we can always limit that cost if we’re more precise in trade. I personally use the following method. 

If the market moves in my direction at the expense of my risk, I will put my stop at the level of my entrance. Thanks to this, I get rid of the risk and I can stay longer in the trade. I also protect myself against possible manipulations and possible wrong analysis.

For example: If I open a EUR / USD trade with a 10 pips stop and a 30 pips target and the market makes 10 pips move in my direction, I will move my stop to the level of my entry, thus eliminating the risk by 10 pips loss. What would happen if the market came back and hit my stop? In fact, I will not lose 10 pips, but again I will have the opportunity to check my analysis and eventually to take new trade at a better level or to protect myself against the wrong analysis.

Thanks to real-time notifications from Angels-FX of changes in open positions, you will not need to keep track of whether your position has made the right move to put your stop to the entry level. You will be notified of changes that we make in our trade, and you can decide to do the same or not. That is why we will take care of you by helping you eliminate the risk you have taken.