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Taking Profits too early?

  • #81
  • Sep 27, 2017 10:12am Sep 27, 2017 10:12am
Quoting Grabowski
{quote} Or perhaps admit that there are cognitive biases that we will continue to have, but we wont act them out. One other way is to ask yourself.. "how would I feel in the future, if I take my profits too early now..?" Most likely you would feel bad in the future, because you didn't follow your plan and the edge you have built in the strategy. My strategy is based on large risk:reward (1:4) ratios, if I take my profits too early, say 1:1RR, the edge is gone. and I think a lot of strategies/edges are built around the take profits and exits. Mastering...
Come to think about it, I have asked myself that question and the answers have been pretty mixed actually. There have been occasions when my strategy was poor and closing my position early was a good decision, and there are plenty of other times when I could have profited more - or not lost anything - if I had just been patient enough to wait.
  • #82
  • Sep 28, 2017 12:08pm Sep 28, 2017 12:08pm
Set your self an amount of time for each position you open - in advance! of course you got to asses the situation all the time but just have some limits.
There is no way (that I know) to know when exactly to take profit, if you find this secret you can sell it for a lot of $$..
you will always regret not closing a position in time, there will always be a better time to close it.
  • #83
  • Oct 12, 2017 9:24am Oct 12, 2017 9:24am
Forex is a matter of probabilities. While there's no way for sure to know when to take a profit, having a proper trading and a proper strategy that is part of that plan can certainly help with that. Which is why one should not trade randomly.
  • #84
  • Oct 12, 2017 10:14am Oct 12, 2017 10:14am
Quoting hedging
I have this habit of closing my winning trades too early and keeping the losing ones running until they hit stop loss. I don't know what is the main problem with me for doing this.
I do the same and I regret afterwards,u place stop loss,i don't even place stop loss,i just wait it to come back because I'm following the trend,still iti s frustrating and time taking.then do u do hedging? JOking
  • #85
  • Oct 12, 2017 1:43pm Oct 12, 2017 1:43pm
Quoting mlawson71
Forex is a matter of probabilities. While there's no way for sure to know when to take a profit, having a proper trading and a proper strategy that is part of that plan can certainly help with that. Which is why one should not trade randomly.
By trading randomly we will not find anything from here without losses , but sometimes most powerful strategies fail to work properly and don’t get better result. This is Called Forex trading but we have to focused every faction about this.
  • #86
  • Oct 12, 2017 1:58pm Oct 12, 2017 1:58pm
A bird in hand is worth two in the bushes. Small wins add up. And the feeling of winning will give you a stronger mentality.
  • #87
  • Oct 13, 2017 9:12am Oct 13, 2017 9:12am
Quoting MoneyFocus
A bird in hand is worth two in the bushes. Small wins add up. And the feeling of winning will give you a stronger mentality.
That saying is a perfect way of summing it up. I, personally, am not fond of big risks. I prefer a small profit here and now rather than a hypothetical large one tomorrow.
  • #88
  • Mar 30, 2018 10:54am Mar 30, 2018 10:54am
Quoting mlawson71
{quote} That saying is a perfect way of summing it up. I, personally, am not fond of big risks. I prefer a small profit here and now rather than a hypothetical large one tomorrow.
Then what is your average risk reward ratio?
  • #89
  • Apr 10, 2018 11:53am Apr 10, 2018 11:53am
Are you taking profits to early or you are not being able to identify the actual. The both have a huge difference. If your analysis says the price will move further, then too you are taking exit. It's a psychological problem. But if your analysis doesn't have such thing, it is the skills problem. You have to be more skilled. First find out what is the problem is.
  • #90
  • Apr 10, 2018 1:26pm Apr 10, 2018 1:26pm
Quoting BenDunk
{quote} By trading randomly we will not find anything from here without losses , but sometimes most powerful strategies fail to work properly and don’t get better result. This is Called Forex trading but we have to focused every faction about this.
Yes there is nothing 100% in Forex trading , so every faction in here is unfortunate and if we have to survive in a proper way , first of all we have to ensure a good broker , because the broker can affects the result of our trading with certainly.
  • #91
  • May 5, 2018 1:17pm May 5, 2018 1:17pm
yes, no way to ignore the importance of a right broker , but practically difficult to find right one from all scams. so, we have to be more careful when choosing a broker.
  • #92
  • May 6, 2018 8:34am May 6, 2018 8:34am
Why you are cutting your profits? Because you don't want to lose. It's very natural as most of us is brought with the belief that being wrong is bad.
However, in trading you can be more than 50% of the time and still make money. Also note that your losers feel 2x as bad as your winners.

https://en.wikipedia.org/wiki/Loss_aversion
  • #93
  • May 9, 2018 1:39pm May 9, 2018 1:39pm
Quoting AgusKurniaw
Are you taking profits to early or you are not being able to identify the actual. The both have a huge difference. If your analysis says the price will move further, then too you are taking exit. It's a psychological problem. But if your analysis doesn't have such thing, it is the skills problem. You have to be more skilled. First find out what is the problem is.
To be a skilled trader is a big deal , but its a long term process to achieve this position , for that reason most of us lost motivation after passing sometimes, so it is more appropriate to keep patience.
  • #94
  • May 10, 2018 7:51am May 10, 2018 7:51am
Quoting AlexImam
yes, no way to ignore the importance of a right broker , but practically difficult to find right one from all scams. so, we have to be more careful when choosing a broker.
I agree on principle, but I am not sure the broker has any bearing on when one closes their positions.
  • #95
  • May 11, 2018 7:17am May 11, 2018 7:17am
The question on thread is the main reason why Take Profit feature is introduced or available. Use it . . . wisely.
  • #96
  • May 11, 2018 2:30pm May 11, 2018 2:30pm
Quoting NathanAstel
{quote} To be a skilled trader is a big deal , but its a long term process to achieve this position , for that reason most of us lost motivation after passing sometimes, so it is more appropriate to keep patience.
Even though so many traders consider to be a skilled trader is a long term process , but I don’t think so, just make sure a real Forex Mentor , hope within very short time success can bring.
  • #97
  • May 12, 2018 12:18pm May 12, 2018 12:18pm
In order to have sucess ( what I mean by success is to make profit every month every year consistently) you have to have a positive expectancy in your trades. If you risk 1 and get out with 0.5 you can think it is at least not a looser and money in the pocket but market will get you eventually. Think like casinos, anything u play in casino.. house has a statistical edge in favor of them. You are there to play a game but casino is there everyday every month every year. So the best thing to manage risk is set your trades with positive expectation, proper sl and tp. Depending on your system requirements pull that SL to breakeven after certain profit and ride that trade till the end without thinking about it. You should never ever forget two things. PROTECT YOUR CAPITAL FIRST and THERE IS ALWAYS ANOTHER DAY. If you do that without u noticing money roles in. Dont act like I need money and I missed a huge chance. You will get rich if you are consistent.
  • #98
  • May 18, 2018 7:36am May 18, 2018 7:36am
Quoting mlawson71
{quote} I agree on principle, but I am not sure the broker has any bearing on when one closes their positions.
thanks for agreeing , we the traders have to choose the broker which is more appropriate to the concept of trading that will be used .
  • #99
  • May 18, 2018 7:38am May 18, 2018 7:38am
Quoting AdamCrist
{quote} Even though so many traders consider to be a skilled trader is a long term process , but I don’t think so, just make sure a real Forex Mentor , hope within very short time success can bring.
please don't go negative mind, most of the Forex Mentors are found to be scams.
  • #100
  • May 18, 2018 8:20am May 18, 2018 8:20am
Quoting Kxeroo
In order to have sucess ( what I mean by success is to make profit every month every year consistently) you have to have a positive expectancy in your trades. If you risk 1 and get out with 0.5 you can think it is at least not a looser and money in the pocket but market will get you eventually. Think like casinos, anything u play in casino.. house has a statistical edge in favor of them. You are there to play a game but casino is there everyday every month every year. So the best thing to manage risk is set your trades with positive expectation,...

its a nice post with nice detail. Thank you Mate.
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