123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

How To Get The Timing Of A Take Profit Order Right

By Author: John Arnold
Total Articles: 42

Price is an elusive concept to most Forex traders. Most of them have no clue about the final price when they place their trades. To make up for this lack of knowledge, a system has been devised to dictate the placing (or lack) of a take profit order while trading Forex. There are a particular set of situations that influence it.


In everyday trading, the most common reason for a take profit order to be placed is your expectation for the market to resist or fight your position at a particular range. For instance, you may encounter a sizeable resistance area on your buy order. This is pretty likely to provide you a headache up ahead. If you are in a position where you can clearly identify and anticipate such obstacles, placing a take profit order makes sense.


But placing such a take profit order is not easy. The factors which have the biggest influence on placing such an order are:


1) If you are trading with the overall long-term trend.
2) If you are trading against the overall long-term trend.
1 - Trading WITH The Overall Trend
In fact, the smart choice while trading with the trend is to let the trade run its course. By placing a take profit order, you are effectively limiting the trade’s full potential and reaping profits only upto a certain extent.
2 - Trading AGAINST The Overall Trend
On the other hand, placing a take profit order while trading against the trend is a wise decision. This is due to the fact that the prevailing trend holds up for a long time. This is exactly why you can expect some obstacles to your position when tackling these areas. The entire force and weight of the market will be working against you. Under this scenario, you are also better off taking your profits and getting out while you can. Trends tend to last for years in the

Total Views: 58Word Count: 444See All articles From Author

Investing / Finance Articles

1. Revolutionary Mutual Fund Software Is A Great Source For Exquisite Performance Of Your Advisory Busi
Author: redvisiontech

2. Know About How Peer To Peer Lending Platform Works
Author: Loansninsurances

3. How To Get High Roi By Investing In Gold And Silver?
Author: Monica Sharma

4. Technical Analysis Course, A Necessity For Stock Market Trading
Author: Subrat Das

5. All You Need To Know About Understanding The Payment System Under Gst
Author: Neha Sharma

6. Steps To Get The Best Personal Loan Rate With This Tool
Author: Neha Sharma

7. The Ideal Remittance Guide You Should Refer To
Author: Neha Sharma

8. Make A Smart Money Transfer To India With These Tips
Author: Neha Sharma

9. Looking To Get An Optimum Result On Your Fd? Used The Fd Calculator
Author: Neha Sharma

10. Emi Vs Sip: Which Is The Better Options?
Author: Neha Sharma

11. Benefits Of Scheduling Future Transactions In Mutual Fund
Author: Neha Sharma

12. All You Need To Know About Online Tax Payments
Author: Neha Sharma

13. Do You Know The Benefits Of The Different Nri Accounts
Author: Neha Sharma

14. How To Enjoy Instant Credits Immediate Payment Service
Author: Neha Sharma

15. Angel Funding In India Is In High Demand
Author: Market Finance India

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: