Written by Forex Executive

Naturally, all traders know that you need to set a limit order or at the very least include a profit aim or closing signal in your scheme and keep to it. It is critical not to keep a winning trade open until the moment ‘feels right’. Either you are aiming towards a certain number of pips or you are waiting for something similar to an oversold or overbought signal and then close instantly. First option, if your stop was originally twenty pips out from your opening position, it now moves to twenty pips from the price at which you simply closed half of the order.

Second option, your stop moves to your entry position plus or minus the spread. So if the trend now turns on you, you will have a profit on the 1st half of your trade and break even on the second half. 3rd option, the stop moves to half way between the opening price and the prevailing price . Of course you don’t wish to move it so close to the current price that it’s caused too fast. It might be a gigantic mistake to only close half a trade when it hit your stop, unless you are testing different positions for the stop.