Let Your Profits Run!
An important aspect of most successful Forex trading money management plans usually involves allowing profits on winning positions to accumulate, or run, as long as the market is moving in a favorable direction. Allowing profits to run will often be implemented in a disciplined manner by a trader entering trailing stop orders into the market to protect their profits while still allowing additional gains to accumulate. Alternatively, a trader watching the market carefully can allow their profits to run by watching for telltale signs on a suitable technical indicator that the market may soon be reversing against their position. Once such a reversal signal appears, they can look for an attractive level to close out their profitable trade promptly. Allowing profits to run also usually means that a trader’s take profit levels should be further from the level of a trade’s initiation than their stop loss levels.