This is a very good question that I was asked recently. When Is a Good Time to Close a Forex Trade?
It really is an important part of trading that one should get familiar with. First off unless you are buying or selling at the wrong places the only time you should be closing is when you are meeting your profit targets. With that taken into account also knowing as well wrong wrong and when to get out also.
When to Take a Forex Trade?
What do I mean by good place in trading, well it makes don’t you think to do sell a market at average highs and buy at average lows. Also it makes sense to trade what you see on the chart as the chart is the best tool available to a trader. Focusing on good technical aspects such as trend, structure and the other important confluences in the market. If you are doing this then generally most trades will go into profit, even if you have to wait a while for it to do so.
It is not unusual for me to even in these situations to hold for longer than 3 weeks until it goes into profit. Because of this very reason you must trade smart or even trade with a no roll over fee Forex Broker like Etoro. That way when a trade does not go the way you want you do not have to pay a fee each night for it to stay, the only fee etoro has is a weekend fee which is very small similar in a way to the standard small spread.
Unfortunately all trades do not go our way so we must hold and be patient in trading and be prepared in case it hits our stop loss, wait and be patient, be a trader, not a buyer or seller. Think like a trader, move with the trades, like i said sell at highs when the indicators say so, and buy at lows when the indicators say so, if one does that you will generally always win, in fact it has probability on your side. Except for the sharp pain of a good bit of news punch.
When to Close a Forex Trade?
So in conclusion it is all about being vigilant, stick to low risk trades, if they work out ride them as far as they go depending on the indications and if they do not go your way then take a small loss.
Do not worry if it takes quite a few days to go into profit if you are trading on higher time frames though if the market is sideways, that is the nature of the beast really. The nature of the beast and the negative effects of news, to which ever way you are trading.