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How to Ride a Potentially Profitable Trade as Long as Possible

Originally published at: https://optimusfutures.com/tradeblog/archives/ride-profitable-trades/%20

This article on Riding a Profitable Trade is the opinion of Optimus Futures. “Let your profits run, and cut your losers short.” It’s a common maxim; easier said than done. That sounds like a great idea, but how do you do it? How might you know the optimal time to close a position if it is, indeed, profitable? Before we discuss how to stay in a trade long enough, it’s important to understand why holding on to winners and cutting off losers is important. First off, many people believe (including Optimus), markets tend to trend because of the following reasons:…