Friday, July 12, 2013

A BIG profit!

You may recall this trade that a fellow trend follower took a while back. This week, the exit signal was finally given. The end result for all his patience and discipline? More than +28R profit (chart below). That covers a lot of small losses!

While it is fair to say that winning trades of this magnitude do not come along every week, they reinforce the discipline you need to ensure that you do not panic, or fear losing profits, and bail out of your position before you get an exit signal.

Placing your trades with only a small percentage of your equity at risk will help you achieve this, and you can focus on the process, rather than worrying about risking (and possibly losing) a chunk of money in one go.

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