Trading 101

The best way to trade suceesfully in Forex is to close half your position at a first profit point or Fibonacci level (T1) when you are in a profitable trade.

It is difficult to do because casual traders (humans) are naturally greedy, but real traders are prudent and will take profits at those same prices. If the pair doesn't continue to the next profit target, you're out with a modest profit...next trade. If it does continue to T2, you are golden. Remember that capital preservation is of utmost importance, not necessarily profits.

As I am writing this entry, this seems to be happening with my Euro/Yen trade. I finished Friday very profitable on the pair and over the weekend, traders covered their shorts. They took profits thus driving the price up. But my T1 is not until 129.45, so I am still in it. (My stop loss is 132.45)