On the most basic level is Take the money, every trade ends with either a profit or a loss. Sure, some traders finish flat, which is when we exit at the same price we entered, producing no gain or loss. Most of the time, though, we`ll be dealing with the agony of being stopped out or the ecstasy of taking profit.
The important factor to remember is that we take profit based on our trade plan, whether it was based on a technical level being reached or an event playing out. When we identify a trade opportunity and went through our plan, taking profit is a joyous feeling knowing we took something out of the market. No trader captures 100 percent of any price movement, so we keep our gains in perspective and always remember:
The market is not here to give us money. That`s why it`s called TAKING PROFITS!. That is we have to take the money on our own.
Above all, at Currency Traders Club, we avoid making rash trading decisions after we`ve taken profit. The market may continue to move in the direction of our trade and we may be tempted to reenter the same position. In some cases, reentering the same position may be the right thing to do, but until we reevaluate the market objectively and without the emotional baggage of previously being right, we run the risk of overstaying our welcome.