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Forex trading tactics


      Forex trading tactics as a part of trading strategy is a fundamental element allowing a trader to work successfully on the financial market.
      Thanks to a correctly chosen strategy, a trader can always easily navigate complicated market movements and enter the market or close a deal at the best price.
      You will agree that even after careful analysis and correct determination of price movements vector, you can lose a significant part of profit if you make a tactical mistake when determining the moment to enter or close a trading position. But if a Forex trader uses smart tactics, all other things being equal, he or she achieves the best results in trading, and possible errors can be easily minimized.
      So what are the tactics you should master in order to achieve the best results in trading? Let us try to answer this question in details, specifying the most effective Forex trading tactics.
      Tactical trading tips
      - Never try to increase the volume of your losing positions. By following this rule you will be guided by one of the best tactics used in Forex trading.
      - Be confident in your trading plan and do not make hasty decisions. Do not take a critical view of your position, even if it has been in the negative zone for a while and is not profitable.
      - Try to plan the deal in advance, identifying the levels at which you can lock profits and possible loss levels, at which the deal will be closed by Stop Loss. It is advisable to do it before you enter the market. The Stop Loss value should be calculated based on actual market data, rather than on the size of your deposit.
      - Stay out of the market, if there are no good trading signals or the situation at the financial market is poorly predictable. Being able to wait out a lack of liquidity or increased volatility in a currency pair will be an indication of proper tactical behavior by the trader.
      - Consider a trading plan when the market transitions from one state to another. The flat, the prolonged fall in price and the prolonged growth of quotations imply using different approaches to trading. They must be thought through in advance in order to be used in practice.
      - Practice the technology of exiting a trading position. Remember that exiting a trade on time is more important than successfully entering the market.
      - Always remember that one and the same trading plan will not always work equally well in different markets. It might be optimal in a rising market, but at the same time it might not work in a falling market.
      - It is not a good idea to sell in a dormant market if the currency pair was previously in a bullish trend, or buy if it was in a bearish trend. By following this rule, you will be using one of the most effective Forex trading tactics.
      - Given the cyclicality of price movements and the fact that trend directions may differ from time to time, it is advisable to trade on a currency pair which shows the same trend direction in nearby timeframes. Trading in the direction of the dominant trend is considered to be the best tactic used for making profits in Forex.
      - Watch when important economic news is published. Shortly before the news becomes widely known to the traders, try to secure the trade by placing a Stop Loss protective order in the breakeven point. From a tactical point of view, it will be justified to refrain from trading during the publication of important economic news, and wait out the period of strong price fluctuations, and only then enter the market. Trading Forex news is a highly risky form of trading and is not suitable for everyone.
      In the above recommendations we have mentioned only a part of tactics, which should be used to increase the efficiency of trading on Forex. As the trader gains experience, he or she may introduce some new trading tactics and thus improve the trading strategy making it better and more profitable.

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