Share:
Placing profit targets is often a difficult task, both technically and emotionally. The problem is that none of us want to exit a profitable position when we think that there is more money to be made. However, it is far better to take a reasonable profit rather than lose everything because you have overreached. Your profit target should take into account the amount of risk associated with the trade – if you can’t see your way to making that profit level with the current trading conditions, then you shouldn’t open the position in the first place.

Again, specific profit target positioning depends on the strategy that you are trading. However, the first thing to look at is where a reasonable profit is given the risk in the trade, and then to see out there any barriers such as resistance levels between the current price and that target level. If there are, then don’t execute the trade – don’t kid yourself into thinking that your trade will breakthrough levels and achieve profits if a completely logical look at market conditions says otherwise. Read More


Do you want to learn more?

REPORT: How to set profit targets and control losses - Neil Rosenthal
REPORT: S.E.T. It Up – Three Parts of a Trade - Rick Wright
REPORT: Money Management and Determining How Large Your Profit Target Should Be - Rob Booker














Editors’ Picks

EUR/USD eases to near 1.0850 on renewed USD strength

EUR/USD eases to near 1.0850 on renewed USD strength

EUR/USD stays under modest bearish pressure, battling 1.0850 in the European session on Tuesday. The renewed USD strength weighs on the pair. ZEW sentiment survey will be featured in the European economic docket ahead of housing data from the US.

EUR/USD News

GBP/USD drops below 1.2700 on notable US Dollar demand

GBP/USD drops below 1.2700 on notable US Dollar demand

 GBP/USD is extending the downside below 1.2700 in the European trading hours on Tuesday. The ongoing bullish momentum in the US Dollar, despite sluggish US  Treasury bond yields, undermines the pair. Mid-tier US housing data are coming up next. 

GBP/USD News

USD/JPY extends rally beyond 150.00 as markets assess BoJ decisions

USD/JPY extends rally beyond 150.00 as markets assess BoJ decisions

USD/JPY preserves its bullish momentum after breaking above 150.00 with the 'sell the fact' reaction to the Bank of Japan's decision to end negative interest rates. In the post-meeting press conference, Governor Ueda said they will consider options for easing broadly, including ones used in the past if needed.

USD/JPY News

Editors’ Picks

EUR/USD eases to near 1.0850 on renewed USD strength

EUR/USD eases to near 1.0850 on renewed USD strength

EUR/USD stays under modest bearish pressure, battling 1.0850 in the European session on Tuesday. The renewed USD strength weighs on the pair. ZEW sentiment survey will be featured in the European economic docket ahead of housing data from the US.

EUR/USD News

USD/JPY extends rally beyond 150.00 as markets assess BoJ decisions

USD/JPY extends rally beyond 150.00 as markets assess BoJ decisions

USD/JPY preserves its bullish momentum after breaking above 150.00 with the 'sell the fact' reaction to the Bank of Japan's decision to end negative interest rates. In the post-meeting press conference, Governor Ueda said they will consider options for easing broadly, including ones used in the past if needed.

USD/JPY News

Gold price struggles to lure buyers, holds steady above one-week low ahead of FOMC meeting

Gold price struggles to lure buyers, holds steady above one-week low ahead of FOMC meeting

Gold price ticks lower amid reduced Fed rate cut bets, elevated US bond yields and stronger USD. Geopolitical tensions could lend some support to the safe-haven XAU/USD and help limit losses.

Gold News

Why is the crypto market crashing?

Why is the crypto market crashing?

The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms. 

Read more

Canada CPI Preview: Inflation pickup could scale back bets on early interest-rate cut

Canada CPI Preview: Inflation pickup could scale back bets on early interest-rate cut

The Canadian Consumer Price Index is expected to have risen by 3.1% YoY in February. The BoC shows no rush to lower its interest rate. The Canadian Dollar maintains its multi-day lows against the US Dollar around 1.3540.

Read more

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology