One of the risk management concepts that you can implement is the Reward-to-Risk Ratio. It is a comparison between risk and desired outcomes. You can determine the desired return with the amount of risk you are willing to tolerate. For example, if you use a 1: 3 ratio for the risk of $ 100. In this case, you expect a return of $ 300 with a risk of $ 100. In other words, the trader in Oman will still get a profit 3 times bigger than the loss he experienced. Aside from that, perhaps you need to visit http://www.arabforex.pro/en/oman/ if you’re looking for the most trusted broker in Oman.
Then, the exit plan or exit position when trading forex is no less important than the entry position. In a way, it is even more important because the exit position determines how much profit or loss you receive. As a new forex trader in Oman, you must keep your emotions under control. Try not to be tempted to change your stop loss as this could interfere with your initial risk management plan. In addition, don’t change the profit target that you have planned just because you feel greedy for a moment.
In forex trading, there will be times when the situation does not match the analysis you have done. If you are faced with a situation at a loss, there are several strategies you can implement to deal with it.
1 Cut loss
In this strategy, you can limit the risk of loss that you are willing to accept. Set a stop-loss point and when the price moves in the opposite direction to your position, you will close the position at that point. That way, you can minimize the existing losses when trading forex in the Oman forex market
2 Cut loss and switch
Not too different from the previous strategy, cut loss and switch can also be used to immediately close a transaction if it reaches a certain loss limit. The difference is, after closing the transaction, you will immediately open a new trading position according to the direction of the current market price movement.