A trade is not complete without an exit. You need to plan and set your take profit point and trade according to your plan. Do not be greedy, or too fearful that the trade will turn against you. Place your trade and let the market lead the way.

Determine the Take Profit (TP) point

As shown on the chart, 1st take profit level should be set on the nearest trend line or resistance level (i usually close half of the position and set the other half to break even). As long after determining the S/L and T/P points, calculate the risk reward ratio. Trade only when the R:R ratio is at LEAST 1:1.

For instance,

S/L: 50pips

T/P: 65pips

Risk:Reward=50pips:65pips

Ratio =1:65/50

=1:1.3

Result: Take the odds on!