Welcome back to our series...........A very common mistake among Forex traders is taking small profits and letting losses run. This is often the result of not having a trade plan. After one or two losing trades,you are likely to take a small profit on the next trade even though that trade could have turned into a large winner
that would have offset your previous losses. Letting losses run often happens to new traders and is not an uncommon problem among even professional Forex traders.
After entering a trade, you do not know where to get out. Once you start losing money on a particular trade, the tendency is to let the loss get larger and larger as you hope that the market will retrace to let you break even – which of course, it seldom does.
This mistake is overcome by using pre-determined protective stop loss orders or hedging to prevent your losses from running, and following your trade plan to take profits at
your profit targets.
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