You are at an advantage on a carefully designed trade, but it still hasn't hit TP. Should you just close the position or let it reach the TP?
If you continue the trade without any changes, this means that you have followed your design with complete confidence and passion. I said taxa because sometimes you better take advantage of it at that time, there are some or all of it. Here are 5 cases where you better take part in the benefits.
#Benefit:
The principle motivation for profit taking is to ensure that your trade is a profitable trade, not a loss. While your position is still floating, it may reverse and go to stop loss, at the same time making it a loss. What you can do is change the stop loss to a few pips from the entry price so that you return the capital or breakeven (BE). If there are any signs that the market will reverse, and may not reach your TP; then it is better if you just close the position.
#The eyelets are involved:
The pair of forex may have gone in the direction you wanted them to go, but they became stuck after that. What is the nature of the movement? Is there a single chant that will be followed by a larger movement? or is it oversold/overbought where you might want to exit the market? By knowing exactly the movements of the currency pairs you are trading, you will be wiser in making decisions for entry and exit.
#Trade with more potential:
While waiting for something to take effect, you may have already impressed a potential trade on another currency pair, which might look more attractive. It is important to be careful that you do not jump hastily from trade to trade. But validate your analysis and make sure you are doing the right thing.
# Important news emerged:
Economic news and data are market movers all the time, and any unexpected news or events can change your trading journey. Carefully research the news and its impression of your trade and maybe exit before the price goes to stop loss, you can avoid losses.
#There are other things you need to do:
Are you stuck in front of a computer screen, watching your trades and not letting the market decide? If you are not allowed to remove the computer screen as well as enter the market, it may be a good idea to close that position and make another case. Or if you have anything else to do, just close the PC and let the market determine the fate of your trade.
