Let’s dive into a super important topic: how long to hold onto a trade. Now, if you’re just stepping into the thrilling world of forex, brace yourself for a wild ride of ups, downs, and more twists than a mystery novel.

Let me share a little something that’s worked wonders for me. When I first started my trading journey, I set a simple rule for myself: aim to cover my daily salary. This strategy helps keep losses in check and prevents me from holding onto a trade for eternity. Because, let’s face it, when the CPI news hits, all bets are off, and you might find yourself in a world of trouble.

So, here’s the nugget of wisdom I’d pass on to anyone starting out: set a daily target and stick to it like glue. Especially when you’re still finding your feet in the trading game or testing the waters. Take those profits, treat yourself—you’ve earned it! The goal is to get in, grab your cash, and skedaddle.

Fast forward a few years down the road, with more trades under my belt and a beefier capital cushion, I’ve grown more comfortable holding onto trades for longer stretches. But guess what? I still usually close up shop before hitting my take profit. Why? Well, like I said big news days can mess things up real quick. Plus, holding onto trades overnight is like gambling with your money while you sleep. And Mondays? Let’s just say they’re not my favorite day to trade.

So, bottom line: most of the time, I’ll cash out before hitting that take profit goal. I’m not about to risk it all for a few extra bucks. It’s all about playing it cool, staying flexible, and making smart moves.

So, keep those stop losses tight, take profits wisely, and may your trades always be in your favor!

by Vanessa Vasilache