In trading there is always a question-should I release this winning trade or not? Most of the time you don’t have an answer to that because it all depends on the risk/reward it depends on your previous results, it depends on your trading strategy and the money management. This is all the criteria that will determine will you close the winning trade already in the money or you will leave it. But there is a technique that will give you a good opportunity for a greater profit on each winning trade.Â
So how can you do that? When your trade is in the money and your entry is much lower than a current price in the market, you can change your stop loss, above the entry price, if it is a buy trade or below the entry price if it is the sell trade.
We issued a buy trade alert for the NZDJPY on 12/20/2017 targeting 81.600 and our entry price was 79.142. The pair moved higher, as we expected it and is breaking above the strong upside resistance zone. The price is now safely above our trade entry level and we have issued for members the stop-loss change to 79.450 some 30 pips above the entry. By doing this we have locked the trade in profit and we are releasing the trade for higher profit target we defined upon the entry.
What you can also notice on the chart above is that our new stop loss, which also take profit level now, is below today’s breaking upside candle. This is providing us, even more, with the certainty that our trade will go for targeted higher profit and even much higher. Also, notice that our target level is the long-term downtrend line where we expect a little upside continuation expectation.
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