In trading, there are a lot of different debates.
Today, I want to discuss the logic of using a trailing stop to get out of trades vs trying to hit a hard take profit.
In my opinion, this is a crucial question... This is a question that could determine whether a trader is profitable or unprofitable.
With that said, let's take a look at how to answer it.
There are a lot of things to take into consideration when pondering this, but obviously, the most important thing to consider is which is going to be more profitable in the long run. Remember, if you want to build wealth over a long period of time, it is imperative that you choose a trade management style that is going to make more profit over multiple years. Another thing to keep in mind is that you can change your entry strategy according to market conditions, but use the same type of trade management strategy with all different kinds of entry rules. Also read How Currency Pairs Work In Forex.
I have two goals for this article.
My first goal is to get feedback. I want to know what our readers are doing in terms of trade management, why they are doing it, and if it is working. Getting feedback from hundreds of real, active traders is the best way I know of to learn more about Forex trading. So whether you are losing money every day, treading water, earning small profits, or a millionaire trader, I really, really want your feedback on this so that I can learn more and so that other readers can learn more. Please vote AND leave a comment with more in-depth information. I will appreciate it and so will many other traders.
My second goal is to illustrate what I believe about this matter. I want to explain my feelings about this topic and give you an idea of why I am in very strong support of one side.
I am now going to share my personal opinion via a special forex video on this matter. This is, of course, just my opinion, but I hope I can shed some light on how to use trailing stop and hard take profit. Also read about the Trail stop loss in Forex.
So that is where I am coming from. In my opinion, I just don't see the logic in using a hard take profit. Knowing that any trade entry is going to produce so many different results, I think it only makes sense to take as much of what the market will give you as possible.
Again, please leave a comment and let me know what you think!
Also, please give this strategy a 5 star if you enjoyed it!