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Your, Guide, to Letting, Profits, Run, skills, high-probability, Forex Training, fx trader, forex

How to Overcome This . . . For Good

It’s a hard truth for many traders to swallow but the remedy is simple; many traders largely struggle to let profits run as soon as they deviate from their strategy and let the said outside influences rear their ugly heads. However, staying true to your strategy’s rules for exit (providing it is one that has positive reward compared to what is risked per trade) will dramatically help you to avoid this.

• Setting Your “Take Profit” Target: Knowing exactly when to take profit and exit the trade (or take a portion of it off the table). Without this, you are failing to utilise a good set-up, exposing you to dangerous and destructive emotional impulses early on. Whether it’s a previous swing high (if long) or a previous swing low (if short), or the next big number, identifying a target which is within the realms of possibility is half the battle, won!

• “Scaling out” of your position: By closing out of half of your position and moving your stop to breakeven, you will have the “best of both worlds” by banking half of the profits while also giving your trade the opportunity to run that extra mile. As your stop loss will be at breakeven, you do nothing but benefit from this “free trade” – the perfect set-and-forget scenario. If the trade continues to go in your favour, you will benefit further. If it does not, you will be exited from the trade at “break even” but safe in the knowledge that you will have already banked half of the profits, previously.

Summary

It may sound glaringly obvious but it really does pay to let your winners run while cutting your losing trades short.

These are the trades you dream of, and how you handle them over time can make your entire career, yet alone your month’s trading! Your trading business really does depend on your ability to follow the above steps and piggy-back those immense moves which have both probability and profit potential stacked in their favour. After all, the trend is our friend until the bend in the end!

Rob Colville
Founder
TheLazyTrader.com

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