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How to manage the position well?

Are you a trader or a gambler?
فوریه 17, 2023
What is stop loss and take profit?
فوریه 17, 2023

How to manage the position well?

One of the constant challenges of traders is how to manage their positions. Is position management necessary or is the best strategy SET & FORGET? We have to tell you that nearly 75% of major forex traders have a position management strategy. We will discuss this strategy in detail in the following sections.

But first of all, if you are a forex market trader or a digital currency market trader. To trade, you need to convert your Tomans to Tether or dollars. For this you will need a reference and average price. For this, you can use the live price board of digital currencies. You can make an appropriate decision using the current price of dollars and Tether. It is better not to delay you more than this and go to the main point.


What is the relationship between profit and loss calculation in forex and position management?


Well, we have to start from one place to manage the open position in forex. The first step is how much risk we are willing to take. If you are going to invest a thousand dollars in the financial market. How much damage are you capable of? A person may be able to lose $100. A person may be able to lose $500. You will be entitled to 2-3% risk in each position. Of course, for a higher risk reward than 1 and 2.

When you are going to open your position, you should first calculate the profit in forex. How much will you lose if you stop this position? How much profit will you make if you win this position? Open position management makes sense when market conditions change. For example, you have opened your position, suddenly you see that the market is changing. We mean that the movements of the candles are very sharp or very painful. At this time, it is time to manage the position.


  Open position management in the Sharp market “consecutive spikes”


If the spikes are in the direction of your position, it is best to set your stop loss to your entry point. Because the sharp moves may be a low-volume spike to accumulate profit limits and then the trend will change. On the other hand, you should pay attention to this point; Its return movements are also very fast and you may not be able to close your position manually. The second point is to remove your profit limit so that the market suffers. When you see the market is suffering.

Move your stop loss to the nearest support or broken resistance. And you can move your profit limit as much as 86% of the previous upward or downward wave. Note that the market may become unpredictable at times. So do not take your stop or profit limit completely. But if the market was against the direction of your position, the story is a little different. You have to make every effort to change your position. We mean to raise your stop or close the position manually.

Of course, you must have already understood the reason for the jump in the market. Suppose that you have a buy position on the euro dollar. Suddenly, US inflation statistics are released and it favors the dollar. It is quite obvious that the market is sell and not buy. You should look for your position to sell at this moment. Don’t think about the low and high loss of your previous position. You have to think about how you can manage this position from zero to one hundred. On the other hand, to place a stop in the opposite direction, it is better to read the article “How to place a stop loss” several times in order to make the right decision in the time of excitement.


Open position management in the market range of “candles with small bodies in a row”


Open position management is not just for fast markets. Rather, when you see that the market is moving, the currency pair or your property is suffering, you should check what is the cause. If the trading volume is increasing, but the market is not paying attention to it. We have to tell you that this means that your position spring is compressed and you can take another step towards increasing the volume. Of course, taking into account risk management and capital management.

But if the volume of transactions is decreasing and on the other hand, this position has taken a lot of time. Try to close your position and look for a fast currency pair or an active asset. Because otherwise, the cost of using your capital may increase. Be careful that you are wrong to keep capital in the financial market. Why the market is fluctuating and you are left behind.

Be careful, we are not going to make you feel left out of the market. Rather, we mean that you should try to focus on better trading opportunities. Note that in the financial market, our whole goal is to choose the best opportunity to trade. Our job and skills are slightly different from investing and you should understand this.

Open position management in Sharp Market


Is the forex calculator useful for us in position management?


One of the things that some people choose for their trade. Using a forex calculator to manage open positions. But we have to tell you that this is wrong. Because your strategy as well as market conditions should tell you the amount of changes. We cannot change our position unlike Jet and market conditions..

For example, you may be able to move your stop in the opposite direction based on the forex calculator and its data. Because your capital management parameters as well as your risk management parameters have changed. But the news and the shape and size of the candles tell you to close your position completely.


final word


In this article, we briefly told you that open position management is an experimental matter. On the other hand, keep in mind that open position management will work for you if you can coordinate it with your trading strategy. This issue can only be implemented by backtesting and forward testing. Be careful that you can’t change the fate of the market and show a proper reaction just by reading one or two articles.

If you have any questions or challenges about any part of this article. On the other hand, keep in mind that all our efforts in the VIP digital currency trading team is to increase your speed and accuracy in trading.