Chapter 15Stops, Limits, and Tactics for Risk Control
This book is designed to provide traders knowledge that helps shape forex trades. This knowledge includes fundamentals, charting technical indicators, and market sentiment psychology—to name just a few. The act of trading becomes the application of these areas of knowledge with the forex trader mixing and matching techniques and tactics. The setups used will vary along with the trader.
Charting companies such as eSignal, VisualChart, TradeSignals, TradingView, and ProRealTime are examples of current excellent forex chart providers. These providers offer many indicators, including some that may not be relevant to forex trading. For example, indicators that show volume cannot be used for spot forex. Some companies include experimental indicators that are developed by traders but have not been proven. There is an irresistible urge by traders to find that one indicator that makes a difference. However, this chapter examines alternative setups and compares them with traditional setups that use more common indicators. Which is better? The answers will depend on the skills of the trader. Forex trading success is not a process of instant creation but a process of evolution. You should try different setups and determine which mix is best for you.
Strategies for Stop Losses and Profit Limits—Essential Components of Risk Control
Even if you mastered all of the elements of fundamental and technical analysis, trading success would still ...
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