Been riding this bump since 9am this morning and it’s great, on the verge of making my first £1!!
This is great, except I don’t know when best to exit. Currently got the take profit set to the previous day’s high since it’s been making higher highs but should I play safe and cut it short or let it roll until some nebulous point on the future? It could plummet in five minutes or five days after skyrocketing!!
Newbie would dearly appreciate some learned experience.
I’m no expert, so take my words with a pinch of salt… but, what I do when active trading is look to move my TP and SL accordingly. If I’m making greater and greater profits unexpectedly, why would I cut myself short, right? So as I’m moving my TP, I would also move my stop loss according to my risk ratio, i.e. if I set myself a 2:1 risk ratio, I would stick to those rules even after breaking profit. Does that make sense?
So what if you stop out? You wouldn’t make the largest amount you could have, but you still made more then you ever thought you were going to.
It’s an easy trap to get stuck in that’s for sure, several times I’ve seen my profit rise to a nice while number but drop a little and I close a good percentage down from peak - But, you still get 100% of that profit, even if it’s less than it could have been!
I have since seen several answers to this problem, and most advocate a formulaic approach and patience, and reiterate that there’s no such thing as certainty in the forex markets.