This is an important tip because many traders treat both sides of the market the same way.
Have you ever had a winning trade and held out for the last pip only to see your target miss by a fraction, the market reverse and give back everything you made, sometimes more?
It has happened to me and I am sure it has happened to you as well.
There is nothing more frustrating than having a winner and then giving it all back.
Have you ever asked the question why?
Many traders like to fade moves and trade against a trend. They love to try and pick bottoms or tops.
This is often referred to as contra-trading.
When trading contra, you need to be faster to take profits than when trading with a trend.
While there is no set rule, more times than not a contra move does not reach a target level for the trade and is quicker to reverse once the buying (or selling) runs out of steam than a move with the prevailing trend.
This trading tip suggests not to hold out for the last pip when contra-trading and why I say don’t overstay your welcome when trading that side of the market.
To sum up, as a general rule, be quicker to take your profit when trading against a trend than when trading with it.
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