Millionaire Tradersextended by 300 pips, then the move is nearing its potential. At
this time, traders using a ranking system may elect to take off 75
percent of the position. A small percentage of the position is kept
on with a trailing stop in case the current trend has the momentum
to extend beyond 400 pips. This way, you are riding as much of the
move as possible while also locking in profits along the way.
Rank Your ProfitsDay traders may also find it useful to employ a ranking system. For
example, if a currency pair has a daily average range of 100 pips,
trying to bank all of those 100 pips on a given day may be very
difficult. Aiming to bank 30 to 40 of those pips on a day trade is
very feasible, 50 to 70 pips may be harder but still possible while
80 to 90 pips may be extremely difficult. This could give traders a
frame of reference of when to take profits on their day trades by
controlling their greed.