“This simple practical management could make the difference between a profitable trader and losing trader”
Risk management is one of the most important elements of a successful trading strategy. If you only do intraday and swing trading, but not aggressive scalping, you may often find yourself having to split your trades so that you can close either half or a portion of your orders to a first profit target, then the other half later on to protect it by a stop loss over the entry-level. So, in order to guarantee a minimum gain for each trade, you can let the profit run and possibly have a much better return than the first one.
This simple practical management of the profit and risk could make the difference between a profitable trader and a losing trader. Therefore, it is a good practice to trade divisible positions so that you have a small steady profit for each transaction, and possibly a good profit when the price explodes in the right direction (let the profit run).
Partially closing a position is possible with most of the common trading platforms, but many entry-level traders are unaware of this. Statistics show that closing partial positions is not utilized much by traders.
How to Partially Close your Position on MT4
Follow the steps below to learn how to partially close your position on MT4:
- Double click on “open trade”
- It opens up the order windows
- Modify the volume according to the portion of trade you wish to close
- Click “Close” (YELLOW button)
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Now your position has been partially closed, and the remaining portion of the order is still running.
How to Partially Close your Position on the Ctrader Platform
Similarly to MT4, on the cTrader platform you can partially close your position by doing as follows:
Related: Which Trading Platform is right for me: MT4 or cTrader
- Double click on the open trade
- It opens up the order windows
- Modify the volume according to the portion of the trade you wish to close
- Click “Close” (RED button)
Now your position has been partially closed, and the remaining portion of the order is still running.
How you can Reduce the Risk and Maximize your Profitable Trades
- Open a divisible position
- Close apportion of your trade with a relatively small profit
- Move the stop loss to the entry-level
- Let the profit run, possibly with a trailing stop
At Tadeview we are happy to guide you through the trading programs that may be new to you, as well as assist you in reaching your trading goals to the best we of our ability.
Rosario Bue
Senior Market Analyst
rbue@tvmarkets.com
