I’m a FX newbie. Been studying forex and trading for around 2 years, read countless books, articles, posts and watched endless videos.
I’ve now got a price action/swing trading strategy I am comfortable with, and so far, has had more winners than losers (about 4 months).
Now I am happy with the system, I need to increase my knowledge on managing the trade and locking in profits
As you can see from this picture, I am currently in a nice NZDCAD trade and it is heading towards my TP level.
The TP level will be a new low, and will have to break through a strong support level to reach this. What I would like to do is lock in a large proportion of my profit, to avoid the trade bouncing from the support and hitting either BE or my Stop loss.
I know there are a number of methods, ie closing part of the trade, or moving the stop loss to a profitable level.
My question to you is, what do you feel is the most effective exit strategy to look in profits?
And with that strategy, what is your step by step method? When do you start looking to lock in profit? And how much do you lock in?
Really appreciate your help in advance.