Difficulty in profit taking
Most players take position in the forex market to meet their enthusiasm. The limit of making money remains unknown unlike some products, auto or houses. Therefore, the forex market faces difficulties,
Appreciation in profit taking
The market is going as your expectation and your position would carry the revaluation gains, so you happen to feel easy and encourage the next coming dream. Here, we must consider that the profit should be realized after closing position and it should remain the revaluation gains during opening position. In the forex market, taking profit is appreciated by anybody. Because of rapid movement of the forex market, it is often the case that the revaluation gain in the previous day has drastically changed into revaluation loss on the following day. Keep in mind to set a target to take profit after carrying position.
Discard of the head and tale
Let the market players discard the head and tales and take up the body to eat deliciously, the forex market says. This indicates the important caution that further trend following at the top or the bottom occurs to lose money even if the forex market breaks the trading range you assume in advance.
Target of profit taking
You must not judge the point to take profit for reason of its own. The forex market would not move in accordance with your expectation like "I will take profit if I can get the 100,000 Japanese Yen" or "I will close my position if the market reaches 100 points favor to me". The market movement is much similar to the natural phenomenon and the weather forecast often shows the wrong direction. Regardless of any predict, you should take the relevant actions by yourself.
The key to make money or lose in the forex market is dependent on the self-control, self-confidence, and self-judgment. There is no way to make some assumptions. For example, you need to have courage to close your position regardless of your market view, if you feel it dangerous that the forex market tries three times to break to range in vain.
One morning, I saw one of my friends was patient to the adverse movement in the forex market. All staffs in the trading room cannot talk to him, and I also found him in trouble. Thereafter, we heard he hit the dealing machine to cut his position to avoid widening further losses. After one minute passed, the forex market suddenly fell sharply. I asked him how you could recognize the timing of sudden fall. He answered with a smile "That' s just my feeling".