The point at which one enters or closes up a trade is always important in trading the forex market. These points have to be taken not of when devising a strategy to trade with.
Basically, a forex strategy should involve when to enter the market, what to do while trade is going on, and when to exit a trade. It also gives precise details on how to go about it, not just when.
WHICH STRATEGY IS THE BEST FOR ENTERING AND EXITING THE FOREX MARKET?
Now, the forex market is very huge, decentralized, volatile, easily accessible, and influenced by different factors. This is to say there a hundred and one ways to approach it; therefore, what worked for trader A may not work for trader B. In essence, there is really no particular strategy that can be said to be the best for entering and exiting the forex market. It all depends on what point of view the trader is approaching the market from.
Having said all that, it is worth mentioning that any standard strategy at all can do well in opening and closing a trader’s position profitably. Instead of looking for a strategy that is best, it is better for a trader to consider his or her strengths and weaknesses, pick a strategy based on that, and make adjustments along the line while mastering the strategy. A lot of traders have followed this procedure to come up with strategies that continually yielded profits.
HOW TO FIND THE BEST ENTRIES AND EXITS IN FOREX
The best forex entry and exit strategies are employs the key factor of market timing. That is the ability to identify the market’s turning points and moves in advance, with a very high degree of accuracy. This directly translates to the knowing what direction the price of a security will go before it goes there. Knowing all of these in advance will give the trader a better protection against risky moves that may result to losses. So, the trader attains low risk, high rewards, and high probability entry and exit positions into the market. Understanding market timing works with these three factors and it will be nothing short of amazing to have a strategy that can tell you the support level where to enter the market, and the resistant level where to exit.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.