Today I had a conversation with Bill Poulos, I posed that question to him. This is what he said? “most forex traders wait too long to move stops to protect their positions and frequently watch their profits disappear.”
And that wasn’t all — he continued, a simple concept, similar to Gambler’s Ruin that permeates the forex trading world.
Here’s a typical scenerio, once a trader sees profit in a trade begin evaporating they get solely focused on getting back the lost profits. They forget to see the need to protect the profits that they still have in the trade. The result? A reversal continues, the once-profitable trade becomes a losing trade and the trader’s frustration mounts.
