that's not enough for me to trade.
OK Guys & Gals - who's long here?
...missed it - darn ;-)
Over the years many traders asked me about the management of a profitable trade.
Here it is how i would act on this one:
I ask myself:
a) what can i win more then if i would close my trade NOW?
b) what can i loose, if i leave my stop where it is?
Answer for this trade:
a) i would make a fraction more, of what i have now in profit, since my target would be the centerline
b) ...and here comes the trap:
often traders would say: "Well, you are at B/E now. So you would loose nothing". Do you see the wrong thinking?
If price comes straight down and stops me out at B/E, i would not only had no profit, but also expense for the trade. In fact i would loose all the accumulated profit. But to get the most out of the trade - what's a trader to do?...here is "my" solution:
Calculate, how much more you would make if price hits your profit target.
Then put your stop this amount away from current price.
If you like to give up a little more and if it's possible not to give up too much, put your stop below todays bar low minus a couple ticks.
This is NOT a hard written rule, this is a trade management philosophy which cares for maximizing my profits (giving markets a little time and room to play out) and preserves my gains.
Do you like such trades?
...here is your free Basic Action/Reaction & Fork Course.
It's very basic, but you learn how this works from the ground: http://mytradingcoach.teachable.com/
It is a huge ressource to continuing to learn from myself.
Just do it...
I'd rather close partially each day and add on dips, since Asian sessions or anything post London close induces a retracement.
But that is a more aggressive approach and demands a suitable strategy to join trends at any given point in time, which most people don't have. They just sit around and wait for the 'trendline retest' or a 'dip' or whatever while the market just goes, boom.
Excellent entry btw.