Pratiyogita
kiran PLACE a STOP order, right along with your
ENTRY order, via your online trading station, to prevent potential losses.
Before initiating any trade, you have to calculate at what point ( price) you
would be wrong, because the market changed direction, and would want to cut
your losses. To make profits, in the
FOREX, a trader can enter the market with a *buy position* (known as going
"long") or a *sell position* (known as going "short"). As
an example let's assume you've been studying the EURO. The EURO is paired first
with the U.S. dollar or USD. Your
trading methods, rules, strategies, etc., tell you that the EURO will rice in
the next 2 weeks, So you buy the EUR/USD pair meaning you will simultaneously
buy EUROS, and SELL dollars). You open up your excellent trading station
software (provided to you for free by Fenix Capital Management, LLC
www.fenixcapitalmanagement.com ) and you see that the EUR/USD pair is trading
at: EUR/USD: 1.2010/1.2013. pratiyogita
kiran subscription online As you you believe that the market price
for the EUR/USD pair will go higher, you will enter a *buy position* in the
market. As an example, lets say you
bought one lot EUR/USD at 1.2013. As long as you sell back the pair at a higher
price, then you make money. To illustrate a typical FX SELL trade, consider
this scenario involving the USD/JPY currency pair: REMEMBER Selling
("going short") the currency pair implies selling the first, base
currency, and buying the second, quote currency. You sell the currency pair if
you believe the base currency (USD) will go down relative to the quote currency
(JPY), or equivalently, that the quote currency (JPY) will go up relative to
the base currency (USD) pratiyogita
kiran magazine.
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