Many traders using different types of strategies for their trading. Some strategies work very well & some another mays not bring about positive results. There are so many good strategies, those are not always working. However, it is depends on your trading experience. as a trader it is totally turning on to your regular basis trading skills. However, we have got so many trading methods. Today i want to discuss half portion profit taking. Those who are used it before, develop your strategy by using this & those who are new please give us feedback by your comments.
How it works :
Suppose you open a long trade, when the trade has reached half of your expected level, then you close the trade & take your profit.
Most of the trader manage their trade in that way, otherwise, all of the profit turn into loss because of the unexpected market retracement. When the market really moves towards your stop loss, then this method works. But what you have to do, when market moves into your favor, yes definitely that is right decision, to take the half portion of profit & stay safe from unexpected loss. But if you have enough confident about your trading strategy & wait until, your trade reach to take profit level & then take the profit. Actually you will understand that, when you are getting almost double profit. On the other hand. If your trade fall into loss, yes definitely, it's a hamper of your business. But as a Forex trader, you have to be accepted that loss trade is also part of your business. And my guess is right here. Because most of the cases, when traders took their half gains, & see their trade hit their targeted level, then there is no limit to despair.
What you have to do in that case, such as when market is in your favor, you can take short term profits by hiking your trading size in half portion profit taking method. However, you can use this technique as you wish in your daily trading. But i have a query to all of you, in which way you can earn a good profit? partial profit gain or target pips profit sense, hopefully i will get your answers through comments.