When to close your position when in profit?

[Ying17]

Very interesting thread. I had this experience last week with a good advise, cause i’m having problem closing my profit.

Yes! its all in our strategy and plan. Let me try to recall what others good advise from me.

1. first things first you earn a profit then it didn’t reach your limit, after that the market starts to go against us. What to do?
   Simple, grab the profit even it gives us a profit of 1 pip. Its still a winning trade, no matter when the world goes around.

2. When we profit already a 20 pips winning trade that looks like a decent amount, grab it. Grab the profit. Our 20 pips per day is worth, compare to hold the amount for overnights to gain hoping 100 pips that is uncertain when theres a non sense direction for tomorrow.

3. Make our own strategy. When we are trading alone. We are the one who pulls the trigger. There is a certain chance that the market will breakout or turn against us. Its our call. Lets stay discipline and Trade Hard. For example, I have been sitting more than 12 hours in the morning till night and just to see any entry until the last minute, its boring and sleepy, then a setup was made after i saw a good entry. Bingo! Profit ed.

[idimitrov]

You should have a plan for every trade. After the deal complete, you can compare your plan with the result.

[LWIL0113]

My strategy exactly…

[dianajs]

You should have a plan for every trade. After the deal complete, you can compare your plan with the result.

Good point. That way you can figure out what went well and what can be done better next time you trade in a similar situation.

[MarkTrader]

Create a plan, stick to it, and make sure that the plan is part of a strategy that should work most of the time.

[alphahavoc]

I am having difficulties deciding when to close a position when in profit.
I guess every profit is good but are there any hidden rules? Like in percentage
of the order value, margin etc?

1/3 or 1/4 of daily range would be a very decent daily amount.
For examples,
Average daily range is 100 pip, 25pip or 33pip daily would be lovely.

Alternatively, close trade
2hr or 3hr before tokyo market closes
or
2hr or 3hr before London market closes

[Jessica_Brown]

Very interesting thread. I had this experience last week with a good advise, cause i’m having problem closing my profit.

Yes! its all in our strategy and plan. Let me try to recall what others good advise from me.

1. first things first you earn a profit then it didn’t reach your limit, after that the market starts to go against us. What to do?
   Simple, grab the profit even it gives us a profit of 1 pip. Its still a winning trade, no matter when the world goes around.

2. When we profit already a 20 pips winning trade that looks like a decent amount, grab it. Grab the profit. Our 20 pips per day is worth, compare to hold the amount for overnights to gain hoping 100 pips that is uncertain when theres a non sense direction for tomorrow.

3. Make our own strategy. When we are trading alone. We are the one who pulls the trigger. There is a certain chance that the market will breakout or turn against us. Its our call. Lets stay discipline and Trade Hard. For example, I have been sitting more than 12 hours in the morning till night and just to see any entry until the last minute, its boring and sleepy, then a setup was made after i saw a good entry. Bingo! Profit ed.

Hello, very interesting post!

What do you think about best time frames for trading? which one is better?

[Jonsnow02]

that’s why every trader need to follow their discipline and strategy. Set your own rules and trade based on that.
if you dont follow your own rules, you earn much money than you expected and even lose much more than u can imagine.

[bearish]

You should have a plan for every trade. After the deal complete, you can compare your plan with the result.

I am also still use plan in my trades using stop loss and taking profit this can recduced emotion because already in plan, but if get lsos indeed still having feeling to regret and disapponted, but sometime I am use cut profoit and loss manually if still in front of computer

[mm473]

Okay so one method is putting a trailing stop.

Another is using price action, if you know how to read charts properly it will tell you when you SHOULD exit.

If you are using money management like per say your strategy involves a 2:1 ratio then it should be subject to price action in my opinion.

More methods are using EMA/MA crossover lines, patterns, even indicators, etc.

[John_Sanders]

I am also still use plan in my trades using stop loss and taking profit this can recduced emotion because already in plan, but if get lsos indeed still having feeling to regret and disapponted, but sometime I am use cut profoit and loss manually if still in front of computer

In my trades i had done the analysis correctly but then somehow the markets were not moving in the direction of my trades and i got losses.

My account was saved due to the use of the stop loss

[dianajs]

Technical analysis is not an exact science, so these things happen occasionally. It’s important to be prepared for them so you can mitigate your losses and continue trading.

[Forex_Verified]

The short, simple answer is that you exit when your system/plan tells you to exit.

If your system/plan doesn’t tell you when to get out, you need to do further work on it. The exit should fit with the reasons and objectives for getting into the trade.

Agreed. And your risk/reward should make sense - no point in getting in a trade with 300 pips SL and 20 pips TP.

[jingoy]

one can have a plan, but when in doubt just close the god damn trade in profit. as long as its profit then its good, yes it can be annoying thinking that you could have had more, but it would have been worst if the trade changed direction and found your self in lose, so go with the less evil here… LOL

[PipMeHappy]

one can have a plan, but when in doubt just close the god damn trade in profit. as long as its profit then its good, yes it can be annoying thinking that you could have had more, but it would have been worst if the trade changed direction and found your self in lose, so go with the less evil here… LOL

Agreed go for it!

[bearish]

Getting profit is most goal among trader, but risk always there in trades, as trader they can’t only relying with “bejo”(lucky), and required good learning and required long years maybe to become profitable trader, certain trader prepared skill through demo more than two years.

[TC_Holland]

Hi Jessica,

You can find a good trading book at this link:

http://marcelm.nl/Van%20Tharp%20-%20Trade%20Your%20Way%20to%20Financial%20Freedom.pdf

It helped me to put a lot of peaces of the trading puzzle together and it looks like you are trying to do that.

[jingoy]

Hello, very interesting post!

What do you think about best time frames for trading? which one is better?

time frames, hmmm this is just a personal opinion i hope it helps, it really depends on your style of trading, if u scalp a lot, like basic hit and go then you are bond by the m15 and m30 time frames, if its swings then maybe its the 1h and 4h time frames, position traders are more of a 4h 1d 1w time frames, personally im more of a 4h 1d trader that tends to look into the 15m from time to time. sorry if its a bit confusing best of luck

[John_Sanders]

time frames, hmmm this is just a personal opinion i hope it helps, it really depends on your style of trading, if u scalp a lot, like basic hit and go then you are bond by the m15 and m30 time frames, if its swings then maybe its the 1h and 4h time frames, position traders are more of a 4h 1d 1w time frames, personally im more of a 4h 1d trader that tends to look into the 15m from time to time. sorry if its a bit confusing best of luck

I would say that we have to learn how we can do trading and also get a good and reliable income from our trading. I prefer to use the H1 and the M30 time frames as they are more suitable to my trading needs.

[Jonsnow02]

In my trades i had done the analysis correctly but then somehow the markets were not moving in the direction of my trades and i got losses.

My account was saved due to the use of the stop loss

have you ever earn money from slippage? I have lost money but havent earn any penny from that.