Tag Archives: Strategy

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Five Trading Questions That Need To Be Answered

Five Trading Questions That Need To Be Answered

Q: Is there any risk in profit taking?

The next phrase may be somewhat of a cliché, and in my personal opinion rather bad advice, but it needs to be noted.  Using a static perspective with specific and well-detailed wording, a trading career carries the indirect expectation of being a binary bet and NOT any long-term plan.  This means that taking a profit may give you a dollar at this moment; however, if the profit is based on an initial set-up with a monetary risk of hypothetically USD $100 and you are planning to execute a trade with the same R/R condition, a risk of doing this continues to exist.  The risk which is, over a period of time, equivalent to the overall sum of your account balance.