SKILLS TO ELIMINATING RISK OUT OF ANY TRADE--PROFESSIONAL TRADING

I don’t trade with TAKE PROFIT!

You never want to close out a profitable trade in haste! The pain to sit and watch market move heavily in your direction, soon after you closed that little budding profit is so excruciating, and could lead the amateur trader to chase after spilled milk. You want to first erase the RISK from the trade and then ride the profit thereafter with great patience and skill.

Place StopLoss at a logical price level where you would not be easily blown out thereby missing out on what is later to become a huge potential profitable trade.

You make a miserable mistake by thinking that that little budding profit you’ve seen from the trade you just placed is a real profit for your taking. This initial shooting profit is to be seen as a bud of a little seedling or plant which is sprouting and yet to grow into a full plant. You hurry to take it, and you are cut from a potential huge profit soon to develop. This skill requires great deal of patience! and patience!! and patience!!! 

Be patient, calm down your emotions; tell yourself “I aim for the bigger profit” and now, allow the profit to grow for a while [Have you observed in wonder how a loser unguarded can fly??????]

As the profit grows, you now professionally erase the INHERENT RISK by gradually moving your STOP closer to entry price level but not so close as you could easily be taken out with the least surge in price movement. [Price ebbs naturally. Get that! And, if you’re taken out, it’s not your grandmother’s wish; it’s price nature]

You do this step by step till you wisely and skillfully eliminate risk by replacing your Initial StopLoss with your Entry price level. This is called Break-Even. Should price soon kick you out of the trade, you gain nothing at all. The better side of it all; you lose nothing!!!

Haven erased the trade off risk; tis now time to consider paying yourself by locking in part of the profit. This is the reward for skillfully, and professionally eliminating the risk! This is done by moving the STOP beyond your Entry price Level. And this literally locks up some cash!

Nobody said you would not be kicked out of the trade. You could! I have often times been. If you give greed a chance, you’ll find yourself moving your stop too close to current price, and before you 

realize, you’re taken out, and you miss the huge profit the trade could bring.

When you have eliminated risk completely, and have locked in some cash for yourself, relax now and manage the trade for profit maximization. You shouldn’t get emotional since you’re now in a risk-free trade. This is a whole task, as you decide to trade manual, and you’ll get used to it with time and constant practice.

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