Best ways for profit taking

in stock market trading systems

OK I hear you "Why to speak about profit taking. It is easy ".

Nope! It is one of the toughest issues for every trader. And it is also why a lot of traders fail.

But your properly prepared stock trading strategy is your edge.

So remember! Every trade is profitable only after profit is cashed on the account. Till you close your profitable trade, your profits are "virtual".

You , as a good trader, must be prepared and know how and when to close your profitable trade and move money to your trading account.

First you must accept that you will never take profit at best available price. You will never catch maximal (for longs) or minimal price (for shorts) to close your trade. Every trader close trade "too soon" or "too late". What does it mean ?

• "Too soon" means that trader has defined target and close part or whole trade when this value is reached. You can define your target by several ways.

• "Too late" means that traders use trailing stop strategy for closing the trade. Good usage of trailing stop is not easy job.
  
  I recommend to use small trail stop for day trades and swing trades and larger trailing stops for position trades. Very good strategy is also to acknowledge status of whole markets and based on current market situation use closer or wider trailing stops.

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