After releasing an article months ago named How to invest your Forex Profits Wisely The article received nearly 6000 views, and to the amount of readers that’s a lot compared to a video. Thank you so much and i appreciate the sharing effort. But there can’t be any investment if there is no money right? And we make money by taking profits from the market. You see! when the trades are floating on the mt4 we can’t count them as profits. We can call them profits right after the trade is closed and the money has landed already on your bank account. That’s when you spend it or decide to invest it, So if you are doing so then this Lesson How to invest your Forex Profits Wisely is suitable for you. On Today’s lesson i am solely focusing on how to take profits wisely.
Statistics show that out of 10 trades opened by different traders on different locations only 2 of them are closed properly (I will explain what properly means) The rest 8 of them will either close manually or wait for stop loss to get hit. Now there is nothing wrong with closing trades manually or letting your trades hit stop loss. But the problem is on the other side. 80% of traders can’t wait for Take profits to get hit or closing the trade manually when the level projected has been hit. It’s easier for a trader to wait for SL to get hit in hope that price will resume with its trend not be stopped out. But the same trader has no faith to wait for TP to get hit even if they are 100% correct about the setup.
There are 2 correct ways to take profits wisely first is to wait for your trade to hits targets, second is to close manually when the trade has hit the projected zone. The second options is very tough emotion wise since even some pro’s mess up so decide to not use it, so why many new retail traders use it? The most common mistake traders make is trying to become pros in just there first year. They neglect these simple tasks like placing trades with both SL and TP on spot, waiting for trades to play out and hit Targets or Stops and as a result the habit is build up and becomes tough to erase.
Profitable trades are very limited and we wanna make the most of them. Any single self inflicted loss can result to a non profitable day, week, month or even a year. We need to get huge reward of the trades we get right and calculated losses when we get hit. Now its very easy for losses to outweigh the wins if a trader makes careless mistakes over and over without learning from the mistakes fast. You know the psychology of a trader when the trade is about to hit TP is very unstable the trader is vulnerable to panic and can even open a new position thinking the market will proceed with the trend that is why meta-quotes programmers installed the SL and TP orders. The machine has no emotions and just executes according to the rules.
So i will wind up by telling you this, Successful traders become successful by integrating the trading business in there lifestyle and doing the right thing over and over seamlessly creating a brain a memory that fits into your daily life, This is the outcome of being discipline over time. If you practice this anybody can achieve it including you. TAKE YOUR PROFITS AND SPEND WISELY.
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