News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Forex Strategy Video: When to Take Profit and When to Let Trades Run

Forex Strategy Video: When to Take Profit and When to Let Trades Run

2014-01-03 23:11:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

• Many traders have taken profit too early and/or seen profitable trades turn into steep losses

• It is impossible to pick the optimal exit (just like the entry), so strategy is important

• I set my first target equal to risk, trail the stop on 2H, watch momentum and evaluate time frames

Find help with your trades and trading strategy from DailyFX analysts with DailyFX on Demand.

What's worse: cutting a profitable trade off well before it has developed or holding on as a positive return turns into a substantial loss? These are issues that every trader must deal with; and just like our series of rules to initiate a trade, taking profit should be a matter of strategy. To make the evaluation more mechanical, I like to take profit on the first portion of my trade at an objective equal to the initial stop distance, trail stops on my remaining position when the first target is hit, set and manage stops commensurate with the time and distance a trade is set for, and regularly evaluate conditions for follow through. We will discuss all of these in today's Forex Strategy Video using two trades I recently booked: USDJPY and GBPNZD.

Sign up for John’s email distribution list, here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES