Exness: Taking profits in FX is difficult. Explanation of the timing of taking profits and the guideline for cutting losses.


This article explains position settlement, profit taking and stop loss for beginners in FX trading. Many people may think it is a waste not to take profits when they are clearly in unrealized profits. However, in reality, when it comes to that situation, they become greedy and find it difficult to take profits.

Forex profit taking is difficult

It is said that taking profits in FX is difficult. This is because of the following reasons. First, you need to think about how far you want to draw a line in the market and how much you can tolerate losses. For that purpose, there are many things you need to think about when starting an order, such as whether you are aiming for a big profit by analyzing it, what the stop-loss level is for the service, positions, trading rules, etc. Technical analysis is an important foundation for this purpose. If the risk-reward ratio is possible, I would like to make a big profit even in fluctuating market prices.

get greedy

When there are unrealized gains on the market, many people want to make even more profits and end up pulling back. However, there is a law of reaction in the exchange market, and once you go, you often come back. In this world, just because unrealized gains are on the market, there is no guarantee that unrealized gains will continue to grow. It is recommended to set a limit price or a stop price depending on the price movement and style you are aiming for on the trend line. Of course, pay attention to economic indicators. Of course, stop automatic trading. You can never win due to the system.

judgment is dulled

When a trend clearly emerges after an entry, many people hesitate to take profits, thinking that the trend will continue for a while. However, trends do not last long and often return in the foreign exchange market. If you fail, a positive pattern will turn negative. Either way, indecisiveness is a negative when putting into practice. Stop losses are out of the question. Make a well-founded entry at resistance and support lines. When holding USD/JPY etc., understand the next action before deciding, depending on the content and direction.


Many people start to worry about where they should take profits after entering and progressing clearly. In most cases, the profit-taking point is not determined at the time of entry. As a result, the end point becomes vague, and unrealized gains disappear without being able to take profits forever. The important thing is to determine the predicted profit and loss (taking profits and cutting losses) based on the basis of buying and selling in the currency pair market. Be sure to decide for yourself what you expect to be the high and low price of the product.

chicken profit

Chicken profit taking refers to taking profits when there is even a small amount of unrealized profit. This is common among beginners, but I do not recommend it. If you do not win where you can, you will end up in the negative if losses begin to pile up. Beginners tend to take profits as soon as there is even a small amount of unrealized profit, and try to endure when there is an unrealized loss. The opposite is actually correct. Think in advance about how far you can stretch your funds. If you are watching the movement with a tool, you may end up stretching out your profits, and you may end up with a small profit that should be large.

How to make sure you take profit

As explained above, when you actually trade, you will find that your unrealized gains will pile up and you will find it difficult to take profits. So, is it possible to take profits reliably? To do this, we recommend trying the following methods. In principle, it is a repetitive task, so if you do it many times, no matter how short or long it is, you will be able to create an accurate and stable strategy. At first, try to use it on your own to a certain extent. If you are new to stocks or FX, make sure you learn about technical indicators if possible before doing it. It also affects your mental state.

risk reward ratio

There is an idea in trading called risk reward ratio. The risk reward ratio is often 1:2 or higher. For example, if you move 10 pips backward from the entry point, you cut losses, and if you move 20 pips forward, you take profit. By doing this, you can see a really good entry point. In addition, there is no risk of unreasonable unrealized loss, and you can avoid the situation where you can not make a profit even if unrealized profit is generated. Risk reward is often set at 1:2 or 1:3.

don’t look at the chart

One of the characteristics of those who can not take profit is that they are watching the chart all the time. This is by looking at the chart, greed comes out. In that case, you can set the profit taking point and the loss cut point in advance at the time of entry and make the settlement automatically. That way your emotions won’t control you. Of course, it is also good to grow even more after taking profit. But don’t feel sorry for this. Because this is common.

decide in advance

First of all, when you enter, you should decide the profit taking point and the withdrawal point. If you start trading without deciding this, you will gradually lose track of where to settle, your unrealized losses will increase, and in many cases this will be fatal. If you don’t know, you shouldn’t enter in the first place. It’s not a technique, but you should make up your mind early on and then decide firmly on where you can aim. In the end, your goal is not guaranteed every time, and you may even lose. If you think it’s a valid opportunity, you should make a clear decision.

Exness is for scalping

Exness is for scalping. This is because the spreads are extremely narrow. Therefore, if you like scalping, please register with Exness and try trading. Opening an account is free, so please refer to the article below to open an account. You can trade continuously, whether it’s swing trading or day trading. You can add moving averages and other lines to the screen. Depending on how you do it, you can make a lot of money, so we recommend that you try it out once.


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