When you read comments by Forex traders about what’s keeping them from success, you get the sense that traders make their moves in the market without really thinking ahead. They may feel like they’re making the right moves and trading smart, but this is far from the case.
Traders enter their trades without planning ahead. They may place an initial Stop Loss order but they try to squeeze every pip of profit they can find. It seems like the best thing to do, but it’s the fastest way to turn winning trades to losing ones.
You need to manage your trades in advance making sure you know how to guarantee your profit once you have it. If you try to ride the trade out, you might see it reverse and your profit turn into lose. Talk about a bad feeling. In Forex trading, there is nothing worse.
If you try to get out at the maximum profit, you risk seeing your profits evaporate to thin air and your trades turn to a losing one. The chances of you exiting at the top are virtually zero. No one can be that accurate all of the time.
You need to have an exit strategy for when you get into profit to make sure that once you have a winning position, that you never see that trade turn to a lose.
You need to guarantee your profits by working with a Trailing Stop order to make sure that you always guarantee an additional margin of profit.
You must first and foremost make sure that you don’t lose and know in advance at which prices you’re going to exit the trade, take your profit, and be happy with it.
In essence, you know in advance what’s going to happen whether you win or lose. It’s like you have a Forex Time Machine at your disposal.
