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Forex Profits! Now What?

Trying to pinpoint a precise profit target is usually a hit-or-miss affair, especially in the roller coaster ride that is currency trading. One of the worst possible scenarios for traders is when price just misses a profit limit by a hair, and then reverses on a dime, ultimately to turn a substantial profit into a loss. Another frustrating scenario occurs when a profit target gets hit and the limit order gets executed, and then price subsequently proceeds to move well beyond that level. Therefore, setting concrete profit targets with the use of limit orders is generally an arbitrary act. In most cases, it is better to let the market actually tell you how much it is willing to give you. To read more about taking forex profits, please click here.

James Chen, CTA, CMT