- Securing a profit: The basic motivation for taking a partial profit is to secure that this is a winning trade and not a losing one. As long as the pair is floating, it could reverse the gains and turn towards the Stop Loss point, making it a losing one.
- The pair is stuck: The pair might have went in your direction but got stuck afterwards. What is the nature of the move? Is it a “dead cat bounce” indicating more moves, or is it oversold / overbought in which you might want to exit?
- Another trade has a bigger potential: While waiting for something to happen, you might have spotted another potential trade, perhaps on another pair, that may seem much more attractive. It’s important to be careful with such cases and not to jump with haste from trade to trade, but verify that you are doing the right thing.
- A significant news event appears: News moves the markets all the time, and an unexpected event could have changed the course of your move. Examine it with care and perhaps exit before price makes its way to you stop loss.
- You have other things to do: Are you stuck in front of the computer screen, watching the trade and not letting it go? If you can’t let go while the trade is on, you might just want to close the trade and set yourself free, and try detaching yourself next time.
Instaforex is one of a forex broker that allow you to partially close your entry.