Taking Profit In Forex

There are several approaches to taking profit. For example some traders will put on several lots on a trade then when the market reaches a predetermined level they will close a small portion of the trade. They leave on the remainder lots so they can continue to be in the market and gain profits.

Then there are the traders that put on a small number of lots, add to the trade when they get additional entry signals and when the market tells them that the current trend is coming to an end then they close all of the positions.

If a trader is making money we can’t say the way they take the profit is bad. As long as we are trying to make money while trading, why not maximize the profits on a trade. We have been thinking, when the market reaches the point that a trader wants to take some profit and the market is still moving why not put a stop loss at the predetermined exit point and let all of the lots continue to run. There are a couple of ways the trade could be ended with a maximum amount of profit and a minimum amount of loss.

The stop loss could be moved up as the market moves up to protect even larger amounts of profit. When the market gives a strong exit signal then close all of the lots on the trade. If the market retraces then continues in the original direction of the trade, at that point the trade can reenter the market and make profits all over again. We know there is no wrong or right way to make money. Pick the way that fits your emotional ability, and trading style.

In any event continue to make money and have fun trading.