Protecting Your Investments

Protecting your investments is the major element, you should consider before getting into the Forex and Stock Market.

By placing limit orders, you guarantee to the best of your ability that you will not lose money on the market and virtually guarantee at least a minimal profit.

However, if you change your mind about those limits, you can always place a stop order. If you leave standing instructions with your stockbroker, these are referred to as open orders that remain such until the transaction is executed and the order filled.

Try to set your limit orders just above the support levels (the lowest levels of value to which a stock can drop) and just below the level of resistance (the upper level above which it is difficult for the value of a stock to rise).

Also, set a value date – a date at which time you can take an average of the value of a particular commodity and review your options. This should be reviewed at least every six months, if you plan to retain any holdings of a particular security.

Protecting Your Investments