CUT LOSS

Often the value of the currency does not move as we wish. When we buy, the price plummeted instead. When we short rates even became popular. At such times, there are several options that you can do.

1. The first is waiting for the price reverses direction. These things you can do when this occurs due to price fluctuations. The market just did a technical correction. In the interval of time that is usually the price not too long will turn around again.

2. when the thing You don't think it might be the case, for example, because the fundamental conditions change, you should IMMEDIATELY close the position. In the event of fundamental conditions change, the price trend is going on will turn the direction so you threatened larger harm. The most appropriate strategy was immediately CUT LOSS, namely the close position in order to reduce the potential for greater risk.

No one likes closing position trader in damages. If you are active players or traders in the currency market, it is inevitable you will often do a cut loss. We will never be able to guess the future. The percentage of

winning in forex transactions of only 50%. If the price does not rise, Yes. So when You lose your position, you may consider a cut loss.

Unlike the stock market, you can't open a position forever, because forex is no margin call. You can just open a position forever original margin you have balances are endless. As any vehicles that have brake, you also require a brake in the forex. Forex sometimes move wildly, a sharp nosedive, and rise suddenly plummeted. If anjiok can be very sadistic. In a matter of minutes can go down hundreds of points. Because it cut loss is the logical choice.

To remember is there is potential loss of chance which may occur. If doing a cut-loss trading, you can still go back and grab the profit to cover previous losses. If nothing is done to cut loss, your money will only stagnate, not growing. You can only hope the magic price turned back. DUS, it is the opportunity cost that must be accepted.

As a trader, be ' robot '. In a sense if necessary cut loss, immediately cut loss. Don't think twice. Do cut loss without feeling.

Prepare mentally when you perform a cut loss. Even as traders conscious decision cut loss it is correct, in the sense of the prices is indeed reversed course and he spared greater harm and, many traders are still gundah-gulana. This may be because of the money the trader however decreased significantly. So do not ever regret has done a cut loss for any reason. Profits could still look for it again at another opportunity.