When something goes wrong with your trading in the forex market, you must know when to reduce losses. By knowing when to exit the trade, you can keep the loss to a small level so that you can continue trading when the market performs as expected. Accepting being lost when losses are small, you can prevent the applied leverage from kicking back and save your account in sufficient funds. If you don’t know when to reduce losses and make up for losses, you can cause huge losses that cannot be handled. In reality, this is the most common forex trading account breaker. However, the biggest problem is to recognize when to stop forex trading and let go.
Time in forex trading
Forex trading is worldwide, but the time in each country is different. So how can we know it’s time to trade?
Forex trading is available for 24 hours a day and five days a week. However, each trading is divided into 3 trading sessions. They are the US session (or also now as the New York session), the European session (or London session), and the Asian session (also called Tokyo or Sydney session). By knowing which trading session it is, you can know the time for you to trade based on your location.
When is the appropriate time to stop trading
There are many different methods you can apply to establish when to stop trading in forex. However, when the analysis is not accurate, there is one similar component that allows you to identify a specific point shown on the chart.
Low percentage in total account
For some traders, they stop when their total account get low in percentage. Or, you can learn how to open a forex account first.
Example: You can decide that 3% will fall in the market regard for the getting out progress. This is very common and it makes the losses you are going to bear particularly clear.
Fluctuation in market
Another common approach is to apply the stop loss plan where you think the market is changing.
For instance: Many traders force themselves to leave the market when it’s lasted changes is not what they originally intended by setting their stop losses underneath the latest swing low or the latest swing high. In this way, They can step back, be free from feelings and start considering whether there are opportunities or not.
Exit in time
Some traders determine when to stop trading in forex by setting time for the exit.
For instance, Day traders won’t keep their quote currencies to the following trading day, they will sell them at the end of trading day without considering the result of their trade. Therefore, they can sleep tight without worrying what gonna happen in the midnight.
Whatever your decision, the market is still there. you can close your trade today, but you can open it normally again tomorrow. The most important thing is when to stop forex trading and how much for the lost is acceptable. Make a detailed stop loss plan and stick to it. If your strategy is wrong which leads to losses, be bold to cut losses, ensuring your capital is safe for future investment plans. Next, find the answer to: Is regular forex trading profitable?