We had some discussions with a number of Forex traders on a problem bothering them as their trades were going on and discovered a common thread - watching positive trades turn into negative trades.

As we have stated already, if you ignore the management of your entire Forex trade, from entry to exit, you are going to have that happen to you - and probably frequently too.

This is the heart of the problem:

An initial stop loss is entered with the trade.

Most traders try to grab all their profits in one try but they really have no preset ‘target’. Once the trade starts to become positive, a lot of traders will ’screengaze’ - they concentrate on the amount they have earned or are earning at the moment. What they fail to do is to plan for the proper exit point for the trade - they often stay too long in a trade and watch the gains disappear when the market changes direction (and then exacerbate the mistake by continuing to stay in order to ‘get back’ the lost gains). In Forex trading this proposition is a loser.

Basically, their greed made them forget the reason for the trade.

Why is a trade made? To optimize gains and minimize risks - that’s it in a nutshell!

Optimizing gain is not an attempt to get out of a trade at the very ‘Top’ - it is following a set of rules during the entirety of a trade to trigger the exit point of profit - and it is at a different point than where you believe it should be!

More on that soon… Minimizing risk goes beyond just placing the initial stop loss - you must manage your stop losses ALWAYS, over the entire period of the trade.

Forex traders are required to protect their capital prior to making a profit. They can employ the proper plan to keep their capital AND profits safe as their position begins to trend up.

The assumption is, by each Forex trader that is a success, that there will be a loss on each trade. They execute this mental game to ensure that they never lose sight of their risk strategy! When a trade switches around in their direction (quite to their awe), the first thing they do is wait for the break-even point and then apply ceaseless stop loss management to get the most profit out of the trade.

They make risk their first priority, followed by making money.

This video will show you how to do it:
http://www.profitabletradingtips.com/private-forex-training

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