City Index Recommends Trading Strategies for Investors

By mosesbet · Filed Under News Comments Off on City Index Recommends Trading Strategies for Investors 

City Index has looked at the different ways investors can plan the next trade. According to the spread betting site, one of the best options for this is Entry and Exit Points. By carefully considering both entry and exit points, investors can benefit a lot from their investments. On the other hand, if they focus only on one, there is a good likelihood that investors will not get much. Most investors have a tendency to prioritize the entry point over the exit. The exit is as important as the entry.

Deciding on a Price Target

To avoid making mistakes that can cost investors a lot, they should decide on a price target. When doing this, investors should consider the risk-reward ratio. For instance, in case of a spread betting position that comes with a risk of 50 points, going for a strategy that allows them to target a profit ratio of 3:1 will be beneficial. This will ensure that for each currency that is risked, there is a likelihood that 3 will be returned. When this strategy is applied to a situation where there is a 50 point risk, the target profit for the spread will be 150 points.

Placing Effective Stop-Losses

Money will be at a risk when a spread betting (financial) position is opened. This is one of the reasons City Index believes a stop-loss should be placed. Traders decide on stop losses based on several factors. For instance, traders place a low limit when they want to allow the market sufficient space to swing. Ideally, the stop-loss should be one that does not allow too much loss.

Implementing Strategies without Risking Loss

According to City Index, traders should find strategies that suit their requirements best. One of the most effective ways for it is to go for an option that allows them to implement various strategies without risking loss. For this, traders will have to sign-up for a demo account. City Index offers this option. Once the demo account is created, traders can use strategies like entry and exit points and stop losses. As the account is free, traders do not have to worry about losing their money if a strategy does not work effectively.



Be Sociable, Share!