Correlation of warrants with trading tactics

This aspect is connected with the sum of occurrence of the market on each position: it should be twice more than the minimum sum resolved for work by that broker house with which you cooperate (for example if the minimum sum for position opening is equal $500,000 it is necessary to open a position for the sum of $1,000,000). It is connected with that change in market occur very quickly.

And if you work with “short” money at the first hints on changes (as a rule, on oscillator signals) it is necessary to close half of profitable position and to tighten stop-loss closely to this level of closing. If the market nevertheless continues the movement, and oscillator signals show a turn (or recoil) it is necessary to move after a course all time level of stop-loss. If there was recoil, and all indicators show tendency renewal it is possible to enter again into the market, having doubled the position which has remained earlier on a trend.

Thus stop-loss level is put closely to level of the maximum recoil (usually at level 0.618 from the previous movement). In such cases stop order statement became strictly differentiated and mobile: the maximum width (remoteness from occurrence level in the market) – no more than 100-150 points. Thus it should be not more or equal size of stop-loss arrangement of large hedges-funds and markets-makers.

If the market nevertheless continues the movement, and oscillator signals will show a turn (or recoil) it is necessary to move after a course all time level of stop-loss. If there was recoil, and all indicators show tendency renewal it is possible to enter again into the market, having doubled the position which has remained earlier on a trend. Thus stop command level is put closely to level of the maximum recoil (usually at level 0.618 from the previous movement).

In such cases stop order statement became strictly differentiated and mobile: the maximum width (remoteness from occurrence level in the market) is no more than 100-150 points. Thus it should not be more or equal size of an arrangement of stop-loss of large hedges-funds and markets-makers (I have learned to define areas of a finding of their stop commands). If the market reached these areas then it was sharply accelerated at the expense of operation of stop-losses and, as consequence, receipt of the big money for the market. The second area of statement of stop orders is resistance or support intermediate levels. And the third area is near to level of closing of half of position (at the first hints of the market on change of a trend or recoil) with the subsequent pulling up and following behind a course.

People who took the decision to participate in forex trading should start from learning the basics of this market to make sure you do not have problems with this industry.

There is another option – you can hire experienced traders to managed your trading account – read more about forex investment here. Also make sure to look for the info in a good forex book.