To take or leave profits?

[hjg]

In forex trading,is it better to withdraw profits as one gains them or leave them in to generate some more?

 

[price777999]

take ...with minimum 3 x stop imho

 

[stefcio2002]

I think there is no general rule here. It all depends upon your character and whether you need that money or not.

 

[hjg]

I think there is no general rule here. It all depends upon your character and whether you need that money or not.

But then isn't leaving them in there taking more risks? Some people argue it is a good practice to take them as they come else one might end up losing them.

 

[price777999]

it would all depend on your win % .

If your win % is between 30-40% ,you will need to hold for 3 x stop to survive .

 

[f2calv]

@hjg suggest you watch these videos, paying particular attention to the last 2 in the presentation. Anton basically gives his view that the difference between Professional & Retail traders is that Retail traders take an income from their trading account whereas Professional traders (portfolio builders) re-invest to accumulate via compounding and take a minimal salary.

http://antonkreil.com/professional-traders-vs-retail-traders-101-media/

I would suggest in the real world of retail traders there is a suitable halfway measure, where you would take out a certain fixed value per month as a 'pat on the back' or 'progress' fee. Then use the rest of the capital to either bolster your trading account or spread the risk and open an alternative trading account elsewhere for different trades, i.e. use one account for day trading, and one account for swing/position trading over longer timeframes.

 

[hjg]

it would all depend on your win % .

If your win % is between 30-40% ,you will need to hold for 3 x stop to survive .

What of when it is higher than 40%?

 

[hjg]

In forex trading,is it better to withdraw profits as one gains them or leave them in to generate some more?

I personally advice to take profits as you make them. It's another way of avoiding losses. Let your capital work up profits or be lost in the losses. You can add it later on when you want.

 

[hjg]

@hjg suggest you watch these videos, paying particular attention to the last 2 in the presentation. Anton basically gives his view that the difference between Professional & Retail traders is that Retail traders take an income from their trading account whereas Professional traders (portfolio builders) re-invest to accumulate via compounding and take a minimal salary.

http://antonkreil.com/professional-traders-vs-retail-traders-101-media/

I would suggest in the real world of retail traders there is a suitable halfway measure, where you would take out a certain fixed value per month as a 'pat on the back' or 'progress' fee. Then use the rest of the capital to either bolster your trading account or spread the risk and open an alternative trading account elsewhere for different trades, i.e. use one account for day trading, and one account for swing/position trading over longer timeframes.

Thank you. I sure will make a point.

 

[Fugazsy]

depend on market conditions and we need to nimble by adapting to it , let say we have trade that has developed in a bull trend with the latest swing projection greater than the previous one and the latest depth of the last pullback shallower then the previous one, we stay in the trade till it shows weakness in the legs up and strength in the legs down compared to the previous one and we will be trailing our protective stop below the latest swing low in case.....now lets say the trend turns at the top in a wide flag or range, buying the bottom of the range by covering all or partial (in case it continues) at the top will be wise.
Selling at the top of the range by covering all at the bottom will also be wise......so as you can see it all depends.....