Of course, all traders know that you must set a limit order or at a minimum include a profit target or closing signal in your plan and keep to it. It is important not to keep a winning trade open till the instant ‘feels right’. Either you are aiming at a certain number of pips or you are waiting for something similar to an overbought or oversold signal and then close right away.

A good source of info about this is http://www.forexmachines.com/reviews/vladimirs-forex-signals-mentoring/. There are a few options for the positioning of the new stop and it is a good idea to back test these for your special system. So if the trend now turns on you, you will have a profit on the 1st half of your trade and break even on the second half. Third option, the stop moves to half way between the opening price and the prevailing price . Of course you don’t want to move it so near to the current price it is caused too easily. Similarly, never be tempted to apply this method to a bad trade. It’d be a giant mistake to only close 1/2 a trade when it hit your stop, unless you are testing different positions for the stop. Currency exchange strategies should maximise your profits, not your losses! .