Start Learning Forex Now: We Provide Tutorial in EN / 中文.
Forex Malaysia 马来西亚外汇

Market Environment 市场环境: Page 6 of 6

Facebook icon

Protect YourSelf From Reversals

Whenever Happy Pip goes swimming at the beach or the pool, she always wears her hot pink rubber ducky floaters. Whenever she trades retracements, she uses stop loss points.

Pink rubber ducky floaters are life savers. Stop loss points are capital savers.

Trading Reversals in Forex

As we said before, reversals can happen at any time. Retracements can turn into reversals without warning.

This makes using trailing stops in trending markets very important. With trailing stop loss points, you can effectively prevent yourself from exiting a position too early during a retracement and exit a reversal in a pinch.


You don’t have to be shot down by the “Smooth Retracement”. You don’t have to lose all those pips. And you most certainly don’t need to wear pink arm floaties (although if pink’s your favorite color, it’s okay – we don’t judge).

Just know how to distinguish retracements from reversals. This is part of growing up as a trader. Having the ability to do so will effectively reduce your losses and prevent winners from turning into losers.

With lots of practice and experience, you’ll find yourself being able to trade accordingly to retracements and exit with a profit more times than not.

May we also suggest further reading for this topic? These forum threads might be able to help you out:



       每当我们的朋友Happy Pip去游泳池或海滩游泳时,她总是带着自己艳丽的粉红色鸭子游泳圈。 而当她要在进行回撤交易时,她总是使用止损点。

       粉红色的鸭子游泳圈,是生命的救星。而止损点是 资本的救星





       您没有必要,被“平稳的回调”所击倒。你也没有必要,亏完所有获利的点。只因为你没有穿上粉红色的救生圈(尽管粉红色可能是你最喜欢的颜色,至于适不适于你 - 我们不予置评)。