Taking Profits too early? | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Exiting a trade and taking partial profits 5 replies

Taking profits early, is this a sensible trading strategy? 14 replies

Exit Strategies for Taking Profits 3 replies

Timeframes for taking profits on 15min, 1hour charts? 3 replies

Taking partial profits? 2 replies

Attachments: Taking Profits too early?
Exit Attachments

Taking Profits too early?

  • #41
  • Aug 5, 2013 2:59am Aug 5, 2013 2:59am
Quoting brendad
Well my friend. I suggest you wonderful reading below extractions from the article "Have you ever asked yourself why you take profits too early, but let your losses run to the full stop? Have you ever wondered why you feel the tension, emotion and desire to close your winning trades too early before hitting your take profit level – even though the trade is already in profit and moving favorably for you? " There is an underlying reason for this, which actually goes beyond your emotions, trading history or experience. It is always present, yet is...
I think this is the answer to the thread's question.
Good psych stuff to read.
Cheers man!
  • #42
  • Aug 20, 2013 1:56pm Aug 20, 2013 1:56pm
Proper analysis and practice is requires to take reasonable profit from risky Forex market. Trader should control their emotions and greed factor and should stick to a trading plan to get positive results.
  • #43
  • Aug 20, 2013 5:52pm Aug 20, 2013 5:52pm
yes, everyone has done this at some time

the way to beat this habit is to set a strict TP that is backed by a significant statistical sample


for example,
if i have just bought EURAUD and my TP is 1.4885,
i hold the position without exiting early because my statistics tell me that my target has a 72% probability of being reached

you need to collect a large sample set of stats in order to give you the confidence to hold your position until the TP is reached

Quoting Emporia
Hi All, I need some help! I have an issue where I can't help it but take profits way to early! Over the past few days this has actually cost me at least £1500 maybe more! I really need to learn to overcome this. Has anyone been there and come out the other side? If you have please could you advise me on how best to overcome this... Emporia
  • #44
  • Aug 20, 2013 6:17pm Aug 20, 2013 6:17pm
I agree. A TP backed by significant statistics, such as a backtest with a large trade sample size, would be the way to overcome taking profits too early.
  • #45
  • Aug 20, 2013 6:20pm Aug 20, 2013 6:20pm
Quoting Emporia
Hi All, I need some help! I have an issue where I can't help it but take profits way to early! Over the past few days this has actually cost me at least £1500 maybe more! I really need to learn to overcome this. Has anyone been there and come out the other side? If you have please could you advise me on how best to overcome this... Emporia
My suggestion to your dilemma is to break up your usual position into multiple positions and scale out TP at different levels.

Example: for simplicity, lets use round numbers.
Your ssual position: 1 minilot
Stop: 50 pips:
Risk $: $50

My suggestion (SL and TP is just for illustration purposes)
Position 1: 2 microlots; SL: 50 pips; TP 50
Position 2: 3 microlots; SL: 50 pips; TP 100
Position 3: 3 microlots; SL 50 pips; TP 150 (This will be your maximum TP based on your system)
Total risk $: $50

This is just my 2 cents because this is the way I trade.
Fear prevent possibilities, and so does Greed
  • #46
  • Oct 7, 2016 2:23am Oct 7, 2016 2:23am
I can't see at this chart. Price is going up without me There was no reason to close this no bad reverse candles... (arrow - place of enter long)

Attached Image (click to enlarge)
Click to Enlarge Name: chart.png Size: 8 KB
  • #47
  • Oct 10, 2016 4:04am Oct 10, 2016 4:04am
You really need to learn to be patient, but unfortunately that usually comes with experience. I had the same problem for a long time as well, it gradually lessened, but I can't say that I did any specific thing I did to lessen it. I just got used to the stress, for the most part.
  • #48
  • May 8, 2017 12:42am May 8, 2017 12:42am
I see, this is very common here, maximum traders close their trade positions too early although the support and resistant levels are too far! By the way, right now I am using multiple TP positions in a trade! So, when I get my 1st TP then I wait for second one; in addition I set my SL and TP in order to the position of support and resistant levels!
  • #49
  • May 8, 2017 3:47am May 8, 2017 3:47am
Taking profit very early,

this thinking can be dangerous for us who are particularly newcomers, because by and large newcomers are loser from here due to lack of exact market principle, as they tried to make profit very rapidly without learning. So, we have to pass a long term in this volatile trading place for acquiring proper trading knowledge so that we can earning profit with consistency.
  • #50
  • May 9, 2017 6:14pm May 9, 2017 6:14pm
Help Required!!!

May i know the best ways to take profit ? Is it through the number of PIPS or through Percentage ?
  • #51
  • May 10, 2017 6:56am May 10, 2017 6:56am
Quoting Denzil
Help Required!!! May i know the best ways to take profit ? Is it through the number of PIPS or through Percentage ?
I don't think that anyone could explain to you how best to make profit in a forum post. I mean, people have written entire doorstopper books on the subject and the topic still hasn't been exhausted. I recommend reading up on technical and fundamental analysis.
  • #52
  • Jun 21, 2017 1:24pm Jun 21, 2017 1:24pm
Quoting MarkFxAnde
Taking profit very early, this thinking can be dangerous for us who are particularly newcomers, because by and large newcomers are loser from here due to lack of exact market principle, as they tried to make profit very rapidly without learning. So, we have to pass a long term in this volatile trading place for acquiring proper trading knowledge so that we can earning profit with consistency.
Taking profit very early is not impossible that you have explained. By using some trading techniques you can make profit very early from here but for that you have to ensure some inevitable part of trading. if you want to get maximal result by high leverage firstly you have to make certain sufficient balance with real risk management approach . otherwise you can fall a great loss.
  • #53
  • Jul 21, 2017 6:38am Jul 21, 2017 6:38am
In my early session of live trading I also took my TP too early because of my lack of trading experience! By the way, now I don’t close my trade manually whatever the result it is! I know, 100% is not possible here; so I am always ready for my live trading result.
  • #54
  • Aug 29, 2017 6:19am Aug 29, 2017 6:19am
Quoting MitchellMcC
{quote} Taking profit very early is not impossible that you have explained. By using some trading techniques you can make profit very early from here but for that you have to ensure some inevitable part of trading. if you want to get maximal result by high leverage firstly you have to make certain sufficient balance with real risk management approach . otherwise you can fall a great loss.
In spite of having sufficient balance high leverage can be harmful, because it contains huge risk. So it is more appropriate to avoid using high leverage in live trading , we can use it in demo to see the performance how it works.
  • #55
  • Aug 29, 2017 7:29am Aug 29, 2017 7:29am
I was profitable in demo account as a newcomer with high leverage. but when I moved my live trading I lost the confident that was in demo. Actually experience in demo works not practically when live trading. it’s just a time passing. Instead of it , micro account is more effective.
  • #56
  • Aug 29, 2017 8:01am Aug 29, 2017 8:01am
Well, I have a good idea for you that I used in my initial stage of trading! Open your trade with SL and TP and then close your trading chart! Don’t monitor your running trade’s position, hope this help!
  • #57
  • Aug 29, 2017 9:28am Aug 29, 2017 9:28am
There are a number of good forecasting tools available in which you can understand where the market is going to terminate. If you want to be a successful swing trader then you need to have patience and the courage to keep your position even when the market is doing a slight retracement.
  • #58
  • Aug 30, 2017 1:26am Aug 30, 2017 1:26am
Turn those words upside down, and it all start to feel easier......
Tp=Stop profit and
SL = Take Loss
Who would like to stop profit too early...or take loss too late?

Actually, if market was random (which it is not in any case,everything happens for reason) it would not matter at all when you take profits or losses.. It all would come back in probabilities... ie. if you use rr 1:1 strategy you would have 50% winners and you would break even.
If you used 1:2 rr you will win 33,33% of trades and you are once again breaking even... if you had 5:1 rr, you are winning most of your trades, but still breaking even...
Spreads and commissions of course turns expectancy negative in random market trading...

So, if you are not breaking even over long term with your entries, you have edge... it does not matter when you take profits or losses after all.. Just be ready to accept losses before they get too big...

Only reason, why letting trades run longer to get edge is spread... If you aim to 5 pips instead of 50 pips will prosentual effect of spread be 10 times bigger...
  • #59
  • Aug 30, 2017 8:19am Aug 30, 2017 8:19am
Quoting ThugLife
There are a number of good forecasting tools available in which you can understand where the market is going to terminate. If you want to be a successful swing trader then you need to have patience and the courage to keep your position even when the market is doing a slight retracement.
Which tools do you prefer to use? I assume you're referring to indicators? Or something else?
  • #60
  • Aug 30, 2017 9:49am Aug 30, 2017 9:49am
Quoting mlawson71
{quote} Which tools do you prefer to use? I assume you're referring to indicators? Or something else?
At the moment I am using Ichimoku Kinko Hyo as my indicator. But I apply the three core theories mentioned by Hosoda: Wave Principle, Time Principle and Price Principle. This allows me to have a better understanding of the market so that I can enter and exit at the right time.

There are a number of different forecasting tools Elliot Wave Principle, Hurst Cycle Theory, Three Peaks and the House of Doom and the Ichimoku Theory. In my opinion, a good forecasting tool will give you an edge, whether you use price action or an indicator. This is because all financial instruments are based upon crowd psychology. If a person uses an indicator on its own, then in my opinion they are gambling. But most people don't bother learning a forecasting tool because it's difficult and its takes dedication.
0 traders viewing now