A good trader should have a particular trading style which dictates when to sell their currency.

This should be decided even before you buy your currency.  Understand where the value of your currency is suited for sale beforehand and set a target price with the aim of making a profit. You should have a plan for when you will sell during a market which is going up (in order to lock in your profit), as well as a market which is going down (in order to limit your losses). Your plan could also be “time-based”, rather than “price-based”. This means that you can decide to sell, no matter the price, after a certain period of time. This is different from “timing the market” which tries to guess when to sell based on the current direction of prices.

This can apply to when to buy currency also. Then stick to your plan – don’t let the emotions caused by an unexpected change of price sway you.

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Category: Trading & Investing
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