should i take profits early when trading forex?

@vickyjoseph - 7 months ago - Risk Management

happy sunday guys, I want to know what you guys think about taking profits early when trading. Is it good to take profits when they come or do I leave the trade running? at what point is enough profit really enough?

@arthur_wildberry - 7 months ago

I dont think taking profits early is a good idea in the long term. I mean it may seem like a good idea/quick fix in the short term, but it will hurt your overall profitability in the long term.

In trading to become profitable over the long term, your profits have to exceed your losses. If you exit with profit early and also cut your losses early then you will only break even and will neither be profitable or unprofitable.

And studies have shown that if you take say 10 trades you are probably going to lose around 6 of them, so this is why for the trades you win you must let the profits run to cover the losses you sustained from the other 6 trades.