How to Use the Stop Loss Order

Stop Loss Order Effective Usestop loss order

There’s a lot to think about when you’re setting up a trade. Many people will sit for a long time establishing their position, giving themselves every possible chance of turning a profit. The truth is however, the markets can be fickle, and there’s always the chance that they’ll move against you. If you’ve missed one of the smallest details of your platform, you could stand to lose a considerable amount of money. That little detail is the stop loss order, something which is too often forgotten by new and experienced traders alike. It is an invaluable tool that should always be used by everyone.

For those who aren’t familiar with the stop loss order, it has a very simple function. It is an instruction to your broker to buy or sell when the price reaches a certain point. The aim is to limit any losses you might make by closing a trade when your position looks like it’s going to worsen. As an example, you might set the order to kick in when the price drops 10% below what you bought at, and your loss would therefore not exceed that. In a sudden and drastic change in the market, the stop loss order can save you a lot of money.
One of the main bonuses aside from being able to prevent large losses, is that the stop loss means that you do not have to constantly monitor the market, ready to close your position if things do take a turn for the worse. You can be away from your platform for an extended period without being concerned that something bad might be happening.

Stop Loss Downside

There is only really one downside to the stop loss order, and that is that it can sometimes be activated too early. This is to say that in more volatile markets, the price may move against you temporarily, before turning in your favor. If the stop loss order has been placed too low, you could end up having your position closed, where it would have been profitable to hold it for a while longer. For this reason, it is important to assess your position wisely, and set an order that allows for some fluctuation, or your losses could increase. There are no exact guidelines on the limit you should impose, as it depends greatly on the stability of the indices you’re trading on.
You can also use a trailing stop in order to ensure profit. This tool locks in once a certain profit is hit, and then closes your position should the price move in the other direction. You only make a profit once you exit the market, no matter how well your trade is going, so this is another very useful tool.
The stop loss order then, is an invaluable tool for any trader to help prevent hefty losses. Some thought needs to go into its use, but there’s no reason not to use it in some capacity in every trade. Visit Alpari US to find out more about the tools available to help traders.

Stop Loss

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Thursday, September 27th, 2012 Foreign Currency Trading 1 Comment

Starting a Forex Trading Business

forexSimple Benefits of Trading Forex

Open a Forex account  : The Forex market is the best business in the world, where dreams are made or broken; it is the place where traders are struggling against each other by buying and selling currencies with the intention of making a profit. The currency market offers more opportunity to make money than when you are working for a big corporation or just an ordinary individual like you and me.

Reasons to Trade Forex

It is better to trade Forex as opposed to oil, gold, stocks, etc. Some of the reasons are given below.

1. Small minimum deposit is suggested by most brokers for depositing as little as $25 to open a new account.

2. The Forex market is always awake, as it is a global market stretched over many time zones the Forex market stays open 24 hours a day, 5 days a week. So there are no limits to trading.

3. The money is liquid, when you are trading currency you don’t need to wait until you can cash out, like with stocks where you have to wait for the stocks to convert to cash before you can cash them in.

4. The size of the Forex market is massive; it is 30 times larger than the United States equities market, so the market is almost 100% liquid. This makes the market more desirable for all to invest in.

5. The market always has a direction when one currency goes up, then the other will go down. This is a desirable feature that there is often a predictable trend.

6. Commissions, exchange fees or hidden charges may be the least. Forex brokers make a profit on the spread, i.e. the difference in the buy and sell price of the currency and most reputable brokers are highly regulated.

7. Profits can be made when the currency starts to fall, this is called a sell trade and you can make substantial gains when selling the currency if you have proper signals.

8. The transparency on the Forex market is very important. Unlike equity markets, the analysts possibly have an unfair advantage over the man on the street because of the certain insider knowledge. Currency markets are very efficient with news feeds and most traders know the condition of the stage.

9. The speed of the Forex market is impressive and it takes little under a second to complete a transaction, and also it is done online.

10. The good news for starting a trading business is that you don’t need any formal education, degree or qualification to qualify to trade. Know the functions, devise smart trading strategies and great techniques and you can be on your way to earning large sums of money trading Forex.

Forex Capital Markets
offers a free Forex practice account, so you can start trading in the Forex market today.

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Thursday, December 1st, 2011 Foreign Currency Trading 1 Comment

Panama's Canal Divides A Country Into Haves And Have Nots

hide captionPanama has seen seen dramatic growth since taking over the Panama Canal in 2000 from the U.S. That prosperity can be seen in Panama City’s rapidly developing skyline. However, many have not yet seen the benefits and the country still suffers from widespread poverty.

Arnulfo Franco/AP

Panama has seen seen dramatic growth since taking over the Panama Canal in 2000 from the U.S. That prosperity can be seen in Panama City’s rapidly developing skyline. However, many have not yet seen the benefits and the country still suffers from widespread poverty.
Arnulfo Franco/AP

Jorge Quijano has one of the coolest office views in the Americas: the Pacific port entrance to the Panama Canal. The panoramic vista seems to help Quijano, who heads the Panama Canal Authority, see the bigger picture.
On the one hand, Quijano understands why Panama has run the canal so effectively since the United States handed it over in 2000.
“When the United States built the canal, it was treated like a non-commercial utility, like a water filtration plant,” Quijano told me in an interview at his Panama City headquarters. “We’re running it as a business.”
One that’s expected to rack up revenues of more than $2.5 billion in 2014, and which moves 330 million tons of cargo in and out of the Western Hemisphere each year.
But Quijano, while stressing that he’s an engineer and not a politician, also concedes that more Panamanians need to see more of that wealth.
For starters, he says, “Panama has to strengthen its education,” which is rated among the world’s worst. “There’s so much investment coming into Panama now, but if we don’t have [trained] people, those investments will go elsewhere.”
This year marks the Panama Canal’s 100th anniversary. Panama is nearing completion of a more than $5 billion expansion of the waterway, and it recently elected a new president, Juan Carlos Varela. There has never been a more critical moment for the country to see the bigger picture Quijano warns about.
Glaring Inequality
If Panama doesn’t start addressing the inequality that keeps almost 40 percent of its population in poverty it may well threaten to turn the boom into bust.
To Panamanians, what the U.S. did in handing ownership of the Panama Canal to Panama is as important as the maritime marvel the U.S. built in 1914.
And Panama has made the most of it. In the past five years, its economy has grown faster than any in Latin America. Panama City has a new subway. Its waterfront skyline now sports the region’s tallest skyscraper, the Trump Ocean Club.
In fact, Panama today rivals South Florida as a prime shopping destination for many in Latin America.

hide captionChildren in a poor Panama City neighborhood play soccer on May 14. The Panama Canal has brought rapid development to the capital in recent years, but 40 percent of the country’s residents still live in poverty.

Mauricio Valenzuela/Xinhua/Landov

Children in a poor Panama City neighborhood play soccer on May 14. The Panama Canal has brought rapid development to the capital in recent years, but 40 percent of the country’s residents still live in poverty.
Mauricio Valenzuela/Xinhua/Landov

“When you go to Miami, you will see a lot of people with luggage in the malls buying things,” says Carlos Urriola, executive vice president of the Manzanillo International Terminal (MIT) next to the canal’s Caribbean entrance. “Today you see this in Panama.”
The MIT, now one of Latin America’s largest ports, handles 20 times more freight than it did in 2000.
“It’s amazing,” says Urriola, “that a small country of 3.5 million people has so much influence in what happens to world commerce.”
Many Haven’t Seen The Benefits
Yet it’s just as astonishing that so few of those 3.5 million seem to feel the benefits – especially Panama’s youth. More than half the country’s children are poor, and almost a fifth suffer malnutrition.
That weighs heavily on Panamanians like Eladia Córdoba, a widowed, unemployed mother in Panama City’s El Chorrillo slum. Given Panama’s prodigious new resources, she says she can’t understand its glaring lack of a social safety net, although the government has recently begun more serious social welfare programs.
“All that canal wealth isn’t getting to poor people or the barrios,” Córdoba says inside her tiny walk-up apartment while feeding her four young children a lunch of pasta and ketchup. “It’s not coming to anyone’s rescue here.”
The canal expansion will accommodate more massive vessels known as Post-Panamax ships, and it should almost double the canal’s revenues over the next decade.
Panama hopes the project will also propel its bid to become the Hong Kong of the Americas, a global maritime and financial hub. Quijano believes Panama is already “the gateway for Latin America and even the United States.”
Panama City’s Prosperity Vs. Colon’s Struggles
But can that stature really last long and meaningfully if Panama doesn’t also narrow the chasm between rich and poor? Between, especially, a Panama City-based white elite known as los rabiblancos and black Panamanians in communities like Colón.
That port city, Panama’s second-largest, sits next to the canal’s Caribbean entrance. But it has been largely left out of Panama’s prosperity. Unemployment there is about 50 percent, and in recent years the frustrations have boiled over into deadly street protests.
Roberto Darkins has taken part in some of those demonstrations. He sells clothing – some of it he proudly shows off as his own brand, Que Jeans – on Colón’s main street. But he laughs when someone mentions Panama as a banking center, given how hard he says it is for small businesses to get even micro-loans.
Darkins also scoffs at Panama’s celebrated building boom – which he says has made housing less affordable for families like him, his wife and four children, who share a one-bedroom apartment on the eighth floor (no elevator) of a decaying 19th-Century building.
New apartment complexes, he says, “charge $500 or $700 a month, and the salary here is like $200 or $300 a month. Who do you expect to go and live in those buildings?”
He also says he fears Panama’s notoriously corrupt political system will devour the fruits of the canal expansion: “The more money you make, the more corruption they’re gonna do.”
Consider a legal case that played out recently in Panama:
The dispute involved a deceased U.S. millionaire who’d left $50 million in his will to a trust for impoverished Panamanian children.
His rabiblanca Panamanian widow and her children fought to annul the will so the money would go to them instead. Panama’s lower courts ruled the will valid – but the widow and her kids got the Supreme Court, whose corruption has been a target of U.S. State Department complaints, to overturn them.
That’s a big part of Panama’s bigger picture. And it will still be right outside everyone’s window when the bigger canal locks open next year.
Tim Padgett is based in Miami with WLRN. You can read more of his coverage here.

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Sunday, June 1st, 2014 Foreign Currency Trading Comments Off on Panama's Canal Divides A Country Into Haves And Have Nots

2014 U.S. Foreign currency exchange - fees sold through Commercial banking-Product & Services Report

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Sunday, June 1st, 2014 forex trend trading Comments Off on 2014 U.S. Foreign currency exchange - fees sold through Commercial banking-Product & Services Report

How to Pull the Trigger Every Time

If you are like most forex traders, you probably bang your head on the desk several times a week because you missed a winning trade that you knew you should take. You almost squeezed the trigger, but you backed out at the last minute. The next thing you know, the market has moved 150 pips in the right direction, and you have missed an opportunity for thousands in profits. If only you had done what you knew was right …If it’s any comfort, you’re not alone – and the good news is that you can do something about it. The first thing to ask yourself is why you are gun shy. In some cases, this can simply come down to fear – particularly if you are on a long losing streak. In other cases, there may be a fundamental confidence problem – you just don’t believe that you can be a successful trader.At other times, the problem can be traced back to an unclear trading strategy or one that is too complicated. It’s also a mistake to place too much emphasis on individual trades – this creates too much pressure, making you hesitant. Remember that forex trading is about making long-term profits, and that you will have both wins and losses along the way.Let’s look at the issue of trading strategy first. You need to have enough confidence in the signals that you are seeing to know when to pull the trigger – and when not to. If you are uncertain about signals, spend time practicing with a demo account until you really believe what you see. If you still find that you are having difficulties, this is probably because you don’t understand your trading strategy well enough. This is the case, take a course or study by yourself until the strategy is crystal clear in your mind.Of course, trading with a demo account will give you confidence in signals, but it won’t deal with the psychological aspects of trading with real money. It’s easy to be confident and pull the trigger when there is nothing at stake, but fear and uncertainty kick in when your hard-earned cash is on the line. All that practice will have shown you that you can be a successful trader, so you now need to avoid anything that introduces doubts into your mind.One of the things that destroys confidence is going over ‘mistakes’ that you think you have made. Hindsight is always 20/20 – if we could go back in time and redo our trades based on what happened subsequently, we would all be billionaires. Focus on future trading opportunities, not past failures. Also, don’t get rattled by individual losses – these are normal and nothing to be ashamed of, provided that you stuck to your trading plan. If you learn to accept losses and emotionally, you will be able to pull the trigger every time you should.

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Thursday, May 29th, 2014 forex trend trading Comments Off on How to Pull the Trigger Every Time

Obama On Limitations He Faces In A Complicated World

In his commencement address at West Point, President Obama laid out a range of goals. In an interview with Steve Inskeep, Obama discusses how he thinks he can use the time that he has left in office.

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Thursday, May 29th, 2014 Foreign Currency Trading Comments Off on Obama On Limitations He Faces In A Complicated World

Ukrainians Choose Billionaire Businessman As Next President

A chocolate-maker is the projected winner in Ukraine’s presidential election. Ukrainians chose businessman and former Cabinet minister Petro Poroshenko to run the country at a critical moment.

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Monday, May 26th, 2014 Foreign Currency Trading Comments Off on Ukrainians Choose Billionaire Businessman As Next President

How Sport Can Help You Trade

Professional forex trading and professional sports may seem like they are worlds apart, but there are lots of similarities that forex traders can learn from if they pay attention. To start with, while every forex trader has the goal of becoming a profitable professional, the unfortunate fact is that most don’t succeed. Similarly, for every major-league player, there are hundreds – or even thousands – of university and high school athletes who don’t make the grade. What sets apart elite traders and world-class athletes from the rest?While native ability plays a big part, real success is also a state of mind. If you have ever seen a basketball player miss that final throw to win the game or watched a golfer choke when they are in the lead with a few holes to play, you will know just how important state of mind is. One of the biggest problems both athletes and traders face is overthinking things when the pressure is on. Traders need to focus on becoming experts with their chosen trading strategies, without trying to second-guess themselves when real money is at stake. This of course is going to result in both wins and losses, but traders are more likely to be successful if they can stay in the zone – in much the same way as a professional athlete does when they are on their game.Another key similarity is that most successful athletes are specialists. While the occasional talented individual is able to play multiple sports at the highest levels, the vast majority only focus on one. They put all their efforts into mastering the sports they have chosen, rather than becoming distracted by other things. Similarly, forex traders need to practice their chosen trading style and avoid becoming distracted by other ones. There is no such thing as a single successful trading strategy – there are a number of different ways to win in the forex market, but continually switching from one to another is a recipe for disaster.Professional athletes also focus on the long term. While they try their hardest to win each game, their real goal is to be part of the championship-winning team at the end of the season. They recognize that they are not going to be perfect and will lose from time to time, but they do not let individual failures – or victories – get in the way of where they want to go. If they were to be discouraged by losing, they would be unable to put in the ongoing effort needed to get to the top of their sport. At the same time, if they let winning go to their heads, they will become complacent and take unjustified risks – which can be catastrophic.Similarly, forex traders need to keep their focus on what it takes to be profitable at the end of the year, rather than getting caught up in the profits or losses that they make in any given day. It takes a lot of mental energy to be profitable in the long term, and there is no use wasting that precious resource on short-term successes or failures – in fact, doing this will change a trader’s trading patterns for the worse.

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Friday, May 23rd, 2014 forex trend trading Comments Off on How Sport Can Help You Trade

Egypt's Ex-Military Chief Right For Presidency, Female Voter Says

Egyptians elect a new president next week. There are two candidates, and the man nearly certain to win is Abdel Fattah al-Sisi. He was the head of the military until he resigned to run for president.

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Friday, May 23rd, 2014 Foreign Currency Trading Comments Off on Egypt's Ex-Military Chief Right For Presidency, Female Voter Says

Malicious Software Probe Reveals Vast Criminal Network

Authorities have charged developers and users of RAT, a software program that makes spying on an individual’s computer easy. Users can capture passwords and spy on people through laptop cameras.

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Tuesday, May 20th, 2014 Foreign Currency Trading Comments Off on Malicious Software Probe Reveals Vast Criminal Network

Record Flooding In Balkans Destroys Communities

hide captionFlooded houses in Topcic Polje, near Zepce, in Bosnia, on Friday. The heaviest rains and floods in 120 years have hit Bosnia and Serbia, killing at least four people and forcing hundreds out of their homes.

Dado Ruvic/Reuters/Landov

Flooded houses in Topcic Polje, near Zepce, in Bosnia, on Friday. The heaviest rains and floods in 120 years have hit Bosnia and Serbia, killing at least four people and forcing hundreds out of their homes.
Dado Ruvic/Reuters/Landov

The worst flooding in Bosnia and Serbia since records began 120 years ago has swept away homes, triggered dozens of landslides, cut off whole communities and killed at least four people.
Heavy rainfall has inundated the Balkans.
In a dramatic video, part of what appears to be a bridge span ripped off by the Bosna River is swept downstream and destroys another bridge near the town of Zavidovici in northern Bosnia and Herzegovina.
[embedded content]
Army helicopters were evacuating thousands of people, but bad weather was hampering the efforts. At least 4,000 have been rescued, authorities said.
Serbia’s Prime Minister Aleksandar Vucic called the situation the “greatest flooding disaster ever.”
The BBC reports that the Serbian government has appealed for help to the European Union, Russia and its immediate neighbors.
Power has been cut to several regions in the Balkans, where an estimated 200 landslides have occurred as a result of the flooding.
The Associated Press reports that two people died in Serbia Thursday from the flooding and that on Friday, two others died in Bosnia.

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Saturday, May 17th, 2014 Foreign Currency Trading Comments Off on Record Flooding In Balkans Destroys Communities

2007 Ban On Gaza Strip Exports Hurts Palestinian Welfare

Agricultural products are the biggest export from the Gaza Strip, but nothing grown there is allowed in the West Bank or Israeli markets. Is the real reason security or competition?

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Wednesday, May 14th, 2014 Foreign Currency Trading Comments Off on 2007 Ban On Gaza Strip Exports Hurts Palestinian Welfare

RSS Action Insight Reports

  • AUD/USD Daily Outlook September 29, 2016
    AUD/USD's rebound from 0.7441 is still in progress and possibly the whole choppy rise from 0.7144 too. But even though break of 0.7754 cannot be ruled out, upside should be limited below 0.7833 to bring near term reversal. On the downside, 0.7602 minor support will turn bias to the downside for 0.7441 support first.
  • USD/CAD Daily Outlook September 29, 2016
    Overall outlook in USD/CAD is unchanged despite this week's volatility. Price actions from 1.2460 are viewed as a consolidation pattern. Hence, in case of further rise, we'd expect strong resistance from 38.2% retracement of 1.4689 to 1.2460 at 1.3311 to limit upside. Below 1.2999 will turn bias to the downside
  • EUR/USD Daily Outlook September 29, 2016
    Intraday bias in EUR/USD remains neutral for the moment as it's staying in range of 1.1122/1326. On the upside, break of 1.1326 resistance should extend the whole choppy rise from 1.0911 and would target 1.1615 resistance next. Meanwhile, break of 1.1122 will confirm completion of corrective rise from 1.0911. In
  • GBP/USD Daily Outlook September 29, 2016
    Intraday bias in GBP/USD remains neutral for the moment. We're still favoring the case that consolidation pattern from 1.2794 should have completed at 1.3444 and the larger down trend is possibly resuming. Break of 1.2794 will confirm this bearish case and would target next projection level at 1.2457. On the
  • USD/CHF Daily Outlook September 29, 2016
    Intraday bias in USD/CHF stays neutral as the pair is bounded in range of 0.9648/9818. Overall, price actions from 0.9443 are viewed as a consolidation pattern. Below 0.9648 will turn bias to the downside. Break of 0.9536 will extend the whole corrective decline from 1.0327 through 0.9443 low. Meanwhile, break

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