In this article, we will talk about the positions in Forex trading. Positions are our temporary assets which help us to make the profit or lose money. As a Forex trader, every investor should know the basics of the positions well before they start trading. As XM Forex, we have decided to prepare an article for our visitors and provide you some detailed information and tips. Below, you are going to find these and we hope they will be beneficial for you in your trades. So let’s start with them.
In case you have more than one position and you are planning to cancel your positions then it will be better for you to start closing them with the losing ones. After the losing positions, you can close the positions which earned the minimum profit among your other positions. The prices may fall in case they have the decrease tendency and the same rules apply for the increase in winning positions. In this way, you can prevent more loss. Let’s assume that you have closed the winning profit. In seconds, that winning profit may earn more but you will lose your chance.
While you are dealing with closing the winning position, you will neglect the losing positions. This will cause you to lose more money. If you would start from the losing positions, you would prevent money loss on your losing positions. Moreover, you will keep earning in your winning position while you are dealing with the losing position. Another mistake that traders do is they close the losing position as soon as they start to lose a small amount of money. Keep in mind that charts fluctuate all the time. This means that they may cause you to lose some money however they can rise in hours and you may have to give up on your possible profit due to the early closure of the position.
Do not open your positions due to a hint you hear from unreliable sources. Even the experts are able to make mistakes on the markets. Do not believe people who claim that they earned millions of dollars from the Forex markets. If they would, they would not be on the internet and try to sell their secrets for few dollars. Would you do such a business when you are able to earn millions of dollars from the market? We hope that these suggestions will be beneficial to you in your trades and you can maximize your profits.