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Pigs Get Slaughtered

This is an adage on Wall Street, but I think it applies equally to Forex. The Forex market can often fluctuate with large moves, and when you are on the right side of that move, there is nothing worse than getting out too early. On the other hand, however, holding a trade too long, until your profit has dwindled to nothing, or perhaps a negative trade at a loss, can damage your psyche. It's all right to leave money on the table when you have made your expected returns. The key is following your broader money strategy—to define exactly how much return you are expecting on every trade and, in the case where the market is moving in your favor, installing trailing stops to protect gains that will save your money.


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