subject: How Do You Know When To Take Profits When Day Trading? [print this page] Whether you are day trading stocks, futures trading ,forex trading ,swing trading or any type of online trading the key to success is taking profits into the run and not when the run is done! If you are day trading long exit your position into the run, dont wait until the run is at the top or bottom to exit dumb mistake. When you try to exit a run at the top or at the bottom, you are fighting with all other traders who have a position, to get out, with a profit. The name of the game is to get out while other traders may still be trying to get in to pick up a few bucks because they are not sure, the run is coming to an end.
Keep an eye on your chart, Bollinger Bands, RSI or whatever indicator you may be using. When those indicators you use for trading stocks as a futures trader or a forex trader tell you its time to get out due to reduced lack of interest of other traders, pay attention and react. Successful day trading is very simple and emotionalists act and react. Dont think about what you think you should do. If you see that indicators imply your position is moving in the direction of your trade, then its time to take your money and run exit the position. Dont fret over a few cents or dollars left lying on the table because more than likely if you had waited to exit, it would be too late and those few cents or dollars you left lying on the table could be a mere fantasy because you could be chasing an exit to break even and that is not a pleasant feeling when you are trying to make day trading successful. Youll be kicking yourself repeatedly for *not* placing an exit to cash in on a potentially winning trade.
A winning trade is one that a smart day trader exits, when the trade is moving in the direction they intended, long or a short. Day trading training assistance from professional day trading education service should place a great deal of focus on this key factor for successful day trading Seriously, why would you not attempt to exit a trade while the position is moving in your favor rather than scramble to place, no doubted a market order, to try and get out of a position with your shirt on? The smart trader doesnt like the scramble mode day trading is not football where the method of scrambling is the name of the game.
To reduce stress and maintain a focus of monotone trading with no emotions, the professional trader makes every attempt to exit a position, effortlessly. The effortless exit mode is one where the position is moving in the traders direction and not fighting other traders to get out of a position, with a profit.
Many professional traders develop a successful trading strategy of exiting positions into a run utilizing market orders to exit, when available. While exiting on a market order may contain risks, normally rewards are much higher when doing so *into the run*. If a trader is trying to exit a position when the position has begun to retreat, it is not recommended for a trader to use a market order to exit a position.
Remember, at no time is it recommended for anyone day trading to use a market order to enter any position since at all times with a market order, you are at the mercy of the market makers and keep in mind, market makers have no mercy for the return of a buck.Jeannie Jeannie@millennium-traders.com, 630 S Wickham Rd Ste 206 Melbourne, FL 321.594.4370
by: Chris Golfer
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