Forex Do you close half lot after making profits?

[Victorial]

Profit making is the only goal of learning and trading the forex market. Forex market is not a get rich scheme as you need to understand the basics and practice very well before you can begin to make profits. However, when you place a trade with a higher lost size than the lowest 0.01, you have the privilege of closing the half lot to secure the profit. This means that you have already made profits and if the market reverses, you have no worries.

While trying to minimize risks, a trader may tend to use the lowest lot size depending on the capital. With 0.01, it is not possible to close half the lot. I have been learning how to utilize this with a demo account and it has been good. I believe I can utilize that strategy while trading a real account too. This will help me to keep making profits each day. I may not necessarily wait for the trade to hit the profit target before I make the some profits

Have you ever closed profits by using this strategy before?

 

[Setho]

This is why a lot of people usually say that there are some people that might be good in determining where and when to take a particular position but not how they are going to take profit and also went to go out of a trade. All these little things are one of the most important things that people do not usually take out time to learn and absolutely important if you want to make money. This is why I'm going to advise that you should not risk more than 5% of your portfolio in any trade that you want to take up.

 

[Swissycheese]

No, but I know I should. It's certainly not a bad idea to take partial profit and cover your costs.

 

[Dita Walczak]

I regularly maintain journals in trading and to maintain this policy I have to work according to plan. If the trader follows Money Management and Risk Management, it is possible to make a lot of profit according to the plan.

 

[Sotherefore]

I have not trade forex before but most of my concentration is always cryptocurrency and that is what I did in the past until recently I stop engaging in cryptocurrency trading because it was not really profitable . yes there are sometimes I will equally make some profit and during this period of time I would close half of the trades just to minimise some Risk and I will allow the remaining one to continue if I am still expecting more increase in the price of the cryptocurrency I am buying but most times it does not always work out as I expect.

They are different strategy that can be used to trade the volatile market and not really that you only have to do it this way before you are capable of generating profit. It is only for people who are not really sure of the next movement of the market , that is why they exit half of the trade .

Most traders that I understand here who are trading cryptocurrency do not use this strategy but they are just interested in taking their profit once and for all. Probably because cryptocurrency is highly volatile compared to Forex.

 

[pawelkolasa]

I generally close half lots after gaining profits. But if there are chances that the market might go further in a favorable direction I use trailing stop loss.

 

[Mary Frederick]

Sometimes I do it when I see that the market can make a reverse move. I do it to avoid risk and take lessons from every of my mistake. Don’t stay seated down while learning rather apply your knowledge on demo account too. Eurotrader provides a free educational program to traders.