What is Stop Loss

Stop loss is a widely used order aiming mainly at limiting the possible losses in case of negative market movements.
Stop loss is used only with open positions. When the market conditions are not favorable for a trader and the price has reached the level of Stop loss, the deal is closed automatically. Therefore, Stop loss helps the trader to control losses and in case of failures to keep safe at least the part of the deposit.
If a trader does not use Stop loss orders, the position is closed by the broker when the sum of losses is equal to the sum of the deposit.
There are 3 types of Stop loss orders: fixed Stop loss, sliding Stop loss and combined Stop loss.
Fixed Stop losses are set while opening positions. They cannot be replaced until the deal is closed. Sliding stop losses, on the contrary, can be replaced any time depending on the price movement. Another name for sliding Stop loss is Trailing stop that can be replaced either manually or automatically considering the traders settings.
Presently there are lots of discussions on whether it is necessary to use Stop losses or not. Some traders believe that Stop loss should be compulsory for trading, emphasizing the ability of Stop losses to prevent the loss of the whole deposit. If the price is rapidly moving in direction, which does not correspond to the forecast, the deal that has not been closed in due time can result in significant losses. The opponents of Stop loss believe that this order can limit not only losses, but profits as well. As the price movement is often unpredictable and unexpected, it can develop according to the trader’s expectations though with some periodic bounces crossing the Stop loss line. In this case the position is closed with losses though it was a possible to close it with profit.
As a rule, the decision on whether to use Stop loss or not depends on the individual strategy of a particular trader. Therefore, there is no single opinion on the necessity of using the limiting the losses.

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Income as the main motive

It is not a secret that every person aims at making earnings to comply with the most of his needs. A good income is a guarantee of well-being and stability.
In the times of information technologies and all-round access to the global network millions of people have boundless opportunities of earning and increasing their capital by means of trading based on currency rates difference within the international Forex market. In 80-es and 90-es “distant” trades on the stock exchanges were carried out through telephone calls. Nowadays, traders can run trading through the Internet and gain more profit keeping seat.
Forex is a worldwide currency market in the form of a global stock exchange where not only banks, corporations and brokerage companies can buy/sell currency, but also anyone who wishes. For example, you can buy dollar and euro at low price and then sell it at higher one – such scheme allows making good earnings in the Internet.


What to Begin with

There may emerge a question: “How people can earn on Forex being far from the world of finance and who do not know the oats of currency speculations. On the whole, trading on Forex market is absolutely simple. Even if you just predict the rates movement, your trading activity will be successful and profitable.
If you feel that euro loses its cost, then you just buy dollar in EUR/USD currency pair, i.e. you put SELL order and finally get profit or lose if your intuition was wrong. However, we have described trading with intuition which can often bring profit, but it does not make you a professional trader, as you cannot draw up any exact forecasts. But you do have all chances to gain on Forex!
Professional traders use different tools set while trading: starting from mass media information (fundamental analysis) to a total indicators array and Expert Advisors.
Daily, every trader operates in the field of around 4 trillion dollars scale. And each one is able to have a piece of this huge pie!
There is no need to be a certificated financier or analyst, logical thinking and some patience will be enough to study the trading mechanism of stock markets. One of Forex market advantages is the provided leverage. A small amount on an account can advance by 100,200 or 600 times! In such a way, you get a substantial sum, make big trades and can wait for high dividends. However, while working on Forex market it is worth remembering about the ways of capital and risk management.

Trading Terminal

Presently, the most comfortable and popular trading terminal is MetaTrader. This program is quite comprehensible, reliable and handy, moreover, it is absolutely free.
A newcomer may consider that MetaTrader is uneasy for operating due to options plenty. Although, after getting wise to the program it is clear that this one is easier than Photoshop.
To play on Forex and get money you have to know only a few options of this terminal, it is so user-friendly that it can be compared to learning ICQ or antivirus program.
Modern technologies develop constantly, so the software moves with the time. MetaTrader terminal allows its users to trade automatically on Forex, in addition to manual operations.
A lot of high-skilled traders have their own trading market strategy. There is a signal – then sell. Another signal – buy.
Now such actions can be completely fulfilled by the automated program – bot. Let’s say, a trader has effective strategy which makes all actions of the trader following the strategy.
In other words, such program is called Expert Advisor or Automatic Trading System. Advisor can play on Forex doing the trader’s work without his participation - in autopilot mode!

Forex Advatanges

Everyone who is interested in doing this business can work in the international currency market Forex through Internet staying on-the-job. Only Forex works 24 hours except for weekends and holidays! For drawing stable profits and significant income you will have to allow only 2-3 hours of your free time.
High yield rate of Forex currency market: during the day the deposit can be extended ten-fold. Even if you don’t think you are lucky and you are not a professional currency trader, it is much better than putting your funds into bank and watch how they are decreased by inflation.
Analysis effectiveness and changes forecasting on Forex market: having analyzed various trends of the market and economic situation in the world, it is possible to forereach the rate fluctuations and direct your funds in the right way.
Total mobility of Forex market and perfect operational control of trading within it. You can earn in the Internet having just 1 dollar or 1000 dollars as well. Aside from this, the trades are executed momentarily. The operations can be stopped for a while and you can close your account any time, you also can manage your trading wherever you are through Internet from a personal computer, laptop or cell phone

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