Find out how to Minimize Your Losses in FOREX Trading

Stop loss order is an essential tool used in FOREX trading to limit losses if market moves against an open position. You simply cannot trade with profit over a long period of time if you don’t limit your losses by using preventive stop loss orders. Yet, you cannot avoid to be nervous everytime your position closes with a loss especially when you catch several stop losses in a single row. Large draw downs are caused by multiple stop losses and it can potentially be lethal to your deposit.
I found a much better alternative to stop losses 6 years ago. Just to make sure, I thoroughly tested it before I use it and since then, I use it everyday with a great success. Ask yourself a question to understand what I am pointing at…
What is the true purpose of a stop loss? Precisely… Minimize losses.
Is there any other way that we can limit losses? Definitely, we can do it. In many cases that when your planned loss is reached, you will immediately close a loosing position. Yet, rather than you close a loosing position..
In the opposite direction at the stop loss target point, you can open another position. Next is you will have 2 open positions. The purpose of one position is for buy and the other one is sell.
If you are not mentally prepared, you cannot close both positions simultaneously and get away with a planned loss plus an additional spread for the second position. Yet don’t be confused because this is not what you would really like to have from this so called lock or hedge.
You can only see the beauty of hedging when you are in timing. You are going to limit your loss at a particular time and exit the market at a different time. You can easily and safely exit the market when the strong movement is over and the market flats out if you make a wrong bet and open a position against a strong trend. You can actually exit the market with zero loss once you exit the market when inter-session and inter-trend flats out. You may observe that FX market do not moves strait up or down. You can find it moving in rages between short-termed trends. Oftentimes, the ranges of these are amidst 30 and 50 pips which concurs to the average stop loss level of a day strategy for EURUSD currency pair. A turning point and a new trend can also be used to close a loosing position. You can even have an opportunity to close it with a good profit in this case, and I do it constantly.
I’ve been taking an advantage of hedging stop loss for a great 5 years of success. The bases of my trading system are high-quality third-party FOREX signals, hedging, money management and special rules of opening and closing positions. Around 30% of my deposit a month is the benefit I earn from this system, and it doesn’t require me to do any technical analysis in order to enter the market at a right time.

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