Don’t get greedy.
A forex trader can make money from being long in a rising market or from being short in a falling market. This trading tip is a warning for traders to avoid getting greedy when contemplating taking profits on a winning trade. When a trader gives into the emotion of greed, it can result in the trading error of failing to rake profits in a timely way. If you are especially susceptible to this emotion, a well established way to avoid having profits on your winning trades erode — and possibly even allowing them to turn them into losers because you were too greedy to take profits when you had accumulated a decent return — is to place a take profit order in the market at the time you initiate your trade. You will then need to discipline yourself when forex trading to not move this order away from the market as the market approaches it.