Hi
When is the right time take profits?
I have a full time job and don’t have the time to check my trades ever 4 hours. The system I am using is easy to understand and I have no problem setting my stops but I am struggling to find a method or strategy on the correct time to take profit and end up getting off the trade to soon.
any advise would appreciated.
Your system should include your target. It is difficult to give a generalized answer as targets are defined by the trade set ups. However, it is a convention to exit on significant levels that may bounce price against us.
Having a predefined target (before executing the trade), prepares one’s mind for what is to come – it reduces flaws caused by emotions.
Targets won’t always be met; at times, price blast through them (perhaps, that may be what you refer to as too soon), but you must take solace in that you have gained more than you risked.
I will add to this by saying that the answer to this question lies in having already developed a experience with your trading style or system. This can only be done in my opinion by way of back-testing your strategy or system extensively. YOU must be comfortable and confident in how your trading system and system performs before entry and exit.
Another thing to keep in mind is this. Many Forex Traders set unrealistic goals when trading. The set superficial targets e.g. they need to get a 2:1 or 3:1 from a trade. I believe that the Forex Market doesn’t always work that way. The Forex Market gives you what “IT” wants to give based on various current circumstances and you simply have to be willing to take “Whatever it gives you” in return when you enter in to any given trade. This is what trade management is all about.
Novice Traders often think about how money there is to be made in a trade. Professionals think about protecting their money and how to exit a trade.
Last but not least. If you’re worrying about not being able to manage your H4 trades I would recommend to move to a higher Time Frame (TF). The Daily and Weekly charts are so much easier to manage.
Have a magnificent day on PURPOSE!
The right time to take profits is when your strategy and price action give you a reason to do so. Trade what is there and not what you want to see.
Try adding a time stop also. As time goes by, your parameters or reasons that made you take the trade start dissappearing.
I think I am going to try that.
thank you.
I usually place my take profit near next support or resistance level that falls after my trade entry. Normally some little trouble areas are also a bit of problem at times but I don’t consider them most of the time.
Its a very confusing part in every trade but we tend to learn it a s we gain experience.
After deep market analysis we should place Take Profit in trading .Some times it is on low pips , when market is fast . In this way we can get small profits. In smooth market we have to Place it on some high pips because market will move to ward this side . For this our prediction and trend definition also work .
It also depends on the type of trading you are trying to do. For scalpers, well just take your profit as soon as possible and run, but if you are a longer timeframe trader then be patient and hold your position longer.