Here is what Bill Poulos had to say about this problem…

“Most experienced Forex traders wait too long to move stops to protect their positions and frequently watch their profits disappear.”

We’ve all been there before…

We start to see profit in a trade begin evaporating and get solely focused on getting back the lost profits.  We try to will the market to move back in our direction and completely forget to protect the profits we still have in the trade.   The result? A reversal continues, the once-profitable trade becomes a losing trade and we kick ourselves for letting a once winning trade turn into a loser.

So, what does Bill suggest we do to fix this problem once and for all?

He said most traders don’t know what the available profit potential is for any single trading event — that is, they don’t set profit targets which allow them to take what the market gives them and then exit the trade in multiple steps. And, without a strategy that protects capital first and manages profits second, there’s no way the average Forex trader can survive in the foreign currency markets.

So, instead of thinking of a trade as one big event, you need to adopt a multi-part strategy for managing the trade.  It boils down to focusing on protecting your capital first and then maximizing your profits. You need to do both in stages.

It is easier to understand what I am talking about by watching a video. This complimentary video from Bill explains how much adopting this approach can improve your trading results.  This is quite amazing information… so don’t miss it.

Watch This Video By Bill Poulos On Forex Trade Management