Successful Forex Decisions. Price halfway to trading target.

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What are you going to do ?

Trading challenge

Below is a typical Forex trading dilemma. You have caught a great entry and the price is on its way to the target. It has reached halfway to the target. What do you do?

Over the next few weeks we will be presenting a number of practical Forex trading situation Forex trader land themselves into. Experienced Forex traders have pre-programmed and automated Forex decision making as result of their years of experience. Many new or inexperienced traders have to work through these options in every trade. Remember it is bad to make emotional trading decisions so it is good to make the decisions that we have presented here before the trade is entered so that they can be pre-programmed and occur automatically without emotion playing a role.

How to Participate

Please do the 2 surveys below and leave comments below this post – let’s see what the most popular options Forex traders are using.  Also if you have other trick trading situations you what to feature in this series please leave them in the comments section.

Options

So to address the current situation let’s identify some options.

1. You could activate a Trailing or following stop. Using a following stop allow the price to still reach the target but offers protection if the price retraces. It is possible to still close with a profit using this approach.
2. You could activate a break-even stop. Using a break-even stop makes sure that you don’t make a loss if the price retraces.
3. You could close the deal. A bird in the hand is worth 2 in the bush. If you close the deal right now you are sure to have a profitable deal.
4. You could close a portion of the deal. If you opened the deal with say 2 lots you could close one and keep the other open. This allows the open lot to still hit the target or be stopped out at break-even if the break-even stop is also used.
5. You could add to your position. by adding to your position you can increase your gain considerably when the target is hit. It does however decrease the value of your stops so you will have to move your stops to a position where you will either be stopped out at break-even or at a small loss.
6. Leave the transaction untouched
7. Any other strategy not mentioned

Remember that some of the options above will change the return on risk considerably.

Survey 1

Please use the survey below to let us know what you would do.

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Survey 2

Would your answers above have been different

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