very important element of the Forex market are stops
very important element of the Forex market are the stops, their underestimation leads to a complete disaster. Without the use of stop orders, traders may be in a deplorable situation, even if one failed transaction. Many players of the Forex market it seems that the short game (5-10 minutes), the use of stop orders is unjustified because the traders themselves closely monitoring the situation on the market. With this logic can not agree. Stop orders can help avoid panic in the critical moments, in addition, they are well disciplined and forced to play on the previously adopted strategy, and not change it during the game. Because the use of stop orders is warranted for any strategy.
But the foot should be able to properly install. When placing a very close, due to minor price fluctuations, perhaps too early to start them up. Sometimes vice versa - put a stop too far, did not prevent serous damage. Proper placement of stops on the Forex market involves their installation in the place where, according to the trader, the price will go against his position.
A very important point is also the setting of stops in places where there are none of the cluster. Here the thing stop hunters. Since many institutional players called the Forex market, are trying to play on the slide for most of the trip stops other players. This allows this "whale" go to market in a better position for them. The most dangerous places to stop placement are: recent highs and lows, round numbers, support and resistance levels, this is where most traders put their feet, because these places have to be avoided. To neutralize the stop hunters are best placed order entry in the immediate vicinity of the areas that hunters will try to break through. But you need to determine the exact strategy to stop hunters, which is quite difficult. But all it is worth trying, because a successful game, you can make a good profit.
Right foot on the Forex market is always saved from significant losses and can not too soon to finish the game. That this should strive for.