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In this installment of trading exits, let's look at probably one of the easiest no-brainer approaches to taking trading profits. This method is going to assume that you already know, in advance, what your probable maximum loss in the trade is going to be.
Why "probable"? As I stated in an article on protective stop placements, these orders are placed in the market (assuming you place them in the market) as stop orders however they do act as limit orders as they are waiting at a set price to execute.
The reason I say "probable" is because once your stops are hit, they act as market orders and will be filled at the best possible price which could include slippage.
I will use the exact same trade as I have in the other posts on profit taking exits which you can find linked at the bottom of this post.
This setup gives us a 60 pip differential from trigger to a price point that if reached, probably is a good sign this move is not going to work at this point in time.
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