Happy New Year! This year I hope to help many more people be succesful in the Forex Market. Here is a tip that will help you maximize your profits, if followed correctly.
Up market and down market patterns are always present, with one being more dominant than the others in the direction of the major trend.
Loss is a part of trading. As you have heard, you need to control your losses and let your winners run. I like to start each trade out small then when the trend develops load up on the trade. This way I could loose 20-30-40 or even 50 pips before I hit the trend. But when the trend takes off, I add on 2-3-5 or more lots in the direction of the trend and make 3 to 5 times what I could have made.
I have heard traders say they like to put on 3 lots at the beginning of a trade then close one lot at a time to lock in profits as the trade progresses. This gives you the highest exposure in the beginning of the trade and you cut your winner short by closing a portion of the trade when it is going in your direction. When you do not hit the trend then you loose a larger amount.
Another way of doing a trade is to start out small and then add on, with proper signals from your indicators, as the trade progresses. You would have a stop loss on the one lot you started with having minimum exposure. You would put on a manual trailing stop loss to protect your profit as the market moves in your direction. I like to call this a “protect profit†at this point rather than a stop loss.
Just find good indicators, learn how to use them, and trust their signals.