In this article we would like to introduce you to a very simple and effective trading strategy – trading with reverse orders. As sometimes Singapore Forex trading is very complicated many new Singapore traders don’t know how to approach it and unfortunately decide to quit Forex trading after few losses. In order to avoid it and help you gain confidence on Forex market, we suggest you a simple strategy that may give you a profit of about 500 pips every month.
The advantage of working with a reverse orders strategy is that you have a good chance to catch the market disregarding of its direction. I believe many Singapore Forex traders were in a situation when the position closes by the stop loss and after that the market changes and goes your direction again. How disappointed we are when it happens!
In order to help you reduce the chances of losses in such situation we present you a strategy of reverse orders. It is a very simple trading strategy and every newbie Singapore trader may apply it. What you need to do is when you open a position on Buy instead of stop-loss level on 25 points you open a position for Sell. The same you do for a position for Sell by you securing it with a position for Buy. The point is that you don’t use a stop loss order and if the market goes against you, you will still remain in the market because you placed a reverse order.
By using this strategy you have a chance to correct your trading position any time disregarding of the market’s direction. The correction works the following way. If one of the orders shows the profit of 10 points you should open another order in this direction. This strategy will allow you to minimize the losses. When you have three orders (two sell and one buy) where in overall you are in profit you can start closing the profitable positions if you see that the market turns and takes another direction. Trading this way lets you open as many positions as you like (we recommend 5-7 positions). Also this strategy is good by trading with a high leverage. Like 1:400 or 1:500.
Please notice that while working on Forex with the strategy of reverse orders you need to open Buy positions when the trend is at the lower level and Sell when it is on the top. We wish you good luck and hope that this strategy will help you make good profits and enjoy your online Forex trading.