Too much money
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I've seen several posts asking for help with closing trades once equity gets to a certain level of profit.
Sounds like they want to protect themselves from making too much money.
Why would that be?
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maybe only in tester, not in the real world
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haha yeah that sucks, always getting too much money.
I had to buy a wider screen in order to show my bank account properly -
Usually people looking for these approaches are using (or considering using) multiple entries on losing positions (i.e. averaging), hoping price will bounce back and allow them to exit at a tiny profit.
This does happen most of the time, so it's in fact very easy to get a streak of 20-30 days without a single losing trade... The problem is when one single move doesn't come back to your average price... then all your money is gone in one trade..... and you can be 100% sure that this WILL HAPPEN at some point, and it won't take very long. It's just a more painful way of dying
There is no magic, the multiple tiny profits happen because the trader is taking infinite risk (the whole account) in exchange for a minimum profit. So, for each single trade, the chance of exiting on tiny profit is much higher than blowing up the account... However, you just have to trade long enough to see your account blow up in that one bad trade.
