Currency Trading For Dummies, 3rd Edition

Chapter 15

Managing the Trade

In This Chapter

Staying on top of prices and news

Listening to what other markets are saying

Updating the trade plan over time

Protecting profits and extending gains

So, you’ve pulled the trigger and opened up the position, and now you’re in the market. Time to sit back and let the market do its thing, right? Not so fast, amigo. The forex market isn’t a roulette wheel where you place your bets, watch the wheel spin, and simply take the results. It’s a dynamic, fluid environment where new information and price developments create new opportunities and alter previous expectations. Actively managing a trade when you’re in it is just as important as the decision-making that went into establishing the position in the first place.

We hope you’ll take to heart our recommendations about always trading with a plan — identifying in advance where to enter and where to exit every trade, on both a stop-loss and take-profit basis. (We go into more detail about developing trading plans in Chapters 10, 12, and 13.) Bottom line: You improve your overall chances of trading ...