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Stop loss order strategy: Stop loss order forex trading strategy is also used commonly among forex traders. This strategy protects the investors and creates a situation called the predetermined point, not allowing the investor to trade when it is reached. This forex trading strategy minimizes the losses. Sometimes this strategy might backfire and make the investor to run the risk of stopping their trading leading to a higher loss, hence it is up to the trader to use or not to use this forex trading strategy.
Automatic entry order strategy: An automatic entry order forex trading strategy is also one of the widely used strategies. This strategy allows the investors to participate in the trading activity when the price is suitable for them. Here the price is already determined and when the situation is reached the investor enters into the forex trading automatically.
Apart from the above strategies, there are certain basic rules to be followed as strategies to gain profits in forex trading:
The amount exposed in the foreign currency trading should always be kept in track to ensure to be within the accepted levels. While trading, the trader should not be very greedy or breach when keeping the returns in mind which is expected out of the transactions. The main objective should be kept in mind; it might be either capital appreciation or constant returns or high profits. Keeping track of ones own experience will reward at a later stage.
Investment should be within the affordability to lose. Also relying on experts opinions, history prices, and analytical statements may be effective some time rather than going by their own instincts.
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