Art of taking Profits..

Hi All,

Traders have this habit of allowing their profits to keep accumulating.This is a great thing to do and nothing wrong until it is going to be only profits that you are going to have. There will be periods when you start having huge losses and at that points of time, you will startlosing your profits as well.

Lets say that you start with $300 (ofcourse this is true for any amount) and you slowly build up the profits and are sitting at $1000 after 2 months. At that point of time, it would serve you well if you can withdraw atleast a part of the profits and let the rest run.The bigger traders would advice you to withdraw 50% of your profits always on a regular basis. The reason for this is that when you face times of severe losses (if u trade a lot, you will surely face suchperiods), it would be very good and safe and nice to know that atleast you were able to enjoy some of your profits.

Sometimes, the profits that you withdraw might exceed the amount that you had invested and that would be the most satisfying time as you would know that even if you blow up your entire account at that time, you still made a profit over and above what you invested.So always make sure that whatever amount you start with and whatever profits you make, you keep withdrawing atleast 50% of your profits sothat you dont lose all the money that you invested when you start facing losses. Do make sure that you always do this and add this point as well to your trading arsenal.

Happy Trading!!