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Sunday, February 27, 2011

Principles of trade exits

 are the same like trade entry, only the opposite. Also, some of your positions will be closed sooner than the trend ends, just to protect your gains in case of some volatile reverse price movements.
What I like in trends is the possibility to increase the number of your profitable positions and the big probability of more future gains if you keep your positions long enough. On the other hand, do not over keep them – this way you will only see the profits disappearing in front of your eyes and losses appearing. And finally - do not play against the trend. It’s always better to follow the forex trend, because trend is your friend, after all.

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