This is Why TAKING PROFIT Will Make You Go BROKE

there's a scene amongst retail traders that you can't go broke Tak in profit well you can and you will taking profit will somewhat paradoxically wipe out your profits welcome back everyone this is another topic that seems to contradict common sense but like everything else in trading the crowd are wrong about everything especially on this so I'm going to explain exactly why profitable Traders don't use profit targets and what they do instead when I talk about taking profit I'm including any and all variations it doesn't matter whether it's a Target three times greater than your stoploss

or a 10:1 ratio it doesn't matter if you're using partial closes and SCA in out of winning positions or even if you use a time-based take profit if you use any takeprofit strategy as part of your system you are hurting your results and will remain a losing Trader you cannot make money in the long term taking profit now I know that sounds nuts but I promise it's not clickit let me explain as you've heard me say in other videos it is impossible to make money from a random Market that isn't my personal opinion it's a

mathematical certainty so unless someone has found a way to break mathematics there isn't anyone on the planet who can make money if they are trading in a random Market and all markets are nearly completely random before we go in further let me quickly explain the maths behind why random data is impossible to profit from in a random Market whether the price goes up or down next is exactly 5050 if you have a 10 pip take profit and a 10 pip stop loss you'll hit the stop 50% of the time and the take profit 50% of

a time they cancel each other amped and the net result is zero and it makes no difference what ratio you use if the stop is three times further than the profit Target say 30 Pips versus 10 Pips you'll hit the profit Target 75% of the time 3 * n to 4 but 3 * 10 is the same as 1 * 30 in random markets it doesn't matter what your profit to loss ratio is in either direction they all cancel each other out and leave you with nothing and it makes no difference if you use a

trading stop on the way to your target or partial take profits all that does is make the results more complicated to calculate but eventually all wins and all losses balance out to Net Zero that is always a mathematical certainty in random data the only way to create a profit is when the market is not random in other words when the price is more likely to go one way rather than the other so the odds are not 50/50 but perhaps 6040 okay now in Forex we have the data to prove reliably that 99.48% of all price

changes are random 99.48% of all price moves are impossible to profit from over the long term that comes as a shock to most people who are used to hearing Instagram Traders brag about having the ability to predict the price with high probability they make it sound like it isn't random at all but hey they are professional Liars the reality is over the course of a 24-hour day on average 23 hours 53 minutes and 29 seconds worth of the market is impossible to profit from in the long run or from the other perspective you've only got

a 7 and 1/2 minute window where you have a chance to make profit assuming you can accurately identify about 7 and 1/2 minutes in the first place that's pretty crazy when you realize the stats isn't it so what does that mean for taking profit it's pretty obvious if you enter a trade and you close it out within 24 hours you are almost certainly trading entirely random data if you're a scalper or taking multiple trades in the same day in and out within minutes or a few hours you're trading entirely random data and that means you

cannot remain profitable in the long run now of course people can have WI in the short term that they can stick on social media to make it look like they know what they're doing but wins and losses will eventually cancel each other out in the long run and you'll have Net Zero profit actually because of trading costs of spreads and commissions you will be in a loss the only way to profit in the long term from Trading is to make sure you are in the market for all of those rare non-random moments and I can

tell you right now it's impossible to predict when they will Happ happen it doesn't matter how many lines you draw on your chart or where you draw them or what fancy terminology you use to describe them you are never going to predict the 0.52% of the time when a price data is non-random especially as you're not even getting 7 and 1/2 minutes every day averages don't distribute so uniformly there may be days or weeks of 100% random price moves and then a concentrated chunk of several hours or a couple of back-to-back days of non-random moves

there's no way to know when or where it happens but it is really easy to make sure you profit from every single non-random move you don't need to predict anything you just need to leave the positions open for the long term and this is how it works if for the sake of argument there was a uniform 7 and 1/2 minutes of non-random price moves every day if you keep a position open for the full 24 hours you would be guaranteed to catch that non-random move keep the position open for another 24 hours and you're up

to 15 minutes of non-random moves you've captured by the end of the week you've got nearly 40 minutes by the end of the month it's just under 3 hours it may not sound like much but it's 100% of what is available these are the only market conditions it's possible to profit from over the long term so it's vital you get every second of it this is one of the reasons you often hear people say that markets are random in the shortterm but less random on higher time frames that's true but it has nothing to do

with chart patterns or anything like that you haven't got a higher probability of being right using higher time frames I'll leave that for another weal to debunk technical analysis and chart patterns the reason long the time frames are less random than shorter time frames is simply because the more time that goes by the more chances there are of seeing a non random moment and if you follow long-term trains you accumulate all of those tiny moments into your positions and varies how you make profit in the long term and the way to do that is using

a trailing stop to follow the trend but never use a take profit as long as the trend continues and there are more and more non-random moments to accumulate into your position you want to catch as many of them as you can you already know non-random moves are few and far between so never limit what you can take by taking profit early all that will do is harm your profits there's a link in the description and the end screen to a full trading system that will teach you how to maximize your profits with the best type

of trailing stop-loss obviously this series of videos I'm doing are note FRS with no examples or animation so I won't try to explain the trade and stop loss here watch that other video because I show full examples on charts so you can see exactly what I mean what I hope I've explained in this video is why taking profit especially on an intraday basis is guaranteed to kill your chances of being a profitable Trader in the long term if this has been helpful or interesting for you please subscribe to the channel if you haven't already give

it a like maybe share it if you can your support helps a lot and I am very grateful to you there are links on the screen now to other videos you might like but especially the system video so make sure you click through to that if you want to learn more thanks for watching and I'll see you next time