This Forex Entry and Exit Methods Strategy
Can Pay you Big Rewards

Using price averaging as a part of your Forex Entry and Exit methods can reduce your risk. The introduction of mini lots has opened a door of opportunity for the average retail Forex investor. Using multiple entry and exit levels helps control your position exposure.

A solid part of any Forex strategy is being able to ride a position when it is moving against your plan. You need a more effective method than setting the typical 30 pip stop loss and then being "stopped out" of a position, only often to have the trend reverse and continue the way you originally identified it.

Forex prices, unlike stock market prices, can never go to zero. They fluctuate around a central price level which is determined by a country's economic performance. These prices move up and down in waves, relative to all the other currencies. With this in mind and with deep enough pockets, you could hold onto a position until the price eventually came back to the levels you originally traded at. (see the Forex Strategy section for more on this)

One of the jewels of my Forex entry and exit methods system, is to average out of a position that may be moving against me, rather than closing it completely with a hard "stop loss". I set a point at which my comfort level starts to suffer, then close only a small portion of my position. This leaves me with the ability to monitor the prices, and often they will rebound and result in a profit, something the "all or nothing" stop loss can't do.

What Goes Up, Must Come Down

If you are going to buy a certain size lot anyway, break it down by buying (or selling) 10 mini lots, as opposed to one full lot. The freedom to fine tune your position will make this one of your favorite Forex entry and exit methods too, I'm sure.


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