Dealers, like casinos, are in the game for the long haul. Human nature being what it is, they know that a majority of traders, having generated a sizable winning trade, will go right back and piddle it all away looking for even greater profits. In a global sense, therefore, dealers like casinos don’t really concern themselves very much with those who show sizable gains, until they start routinely withdrawing their funds instead of “reinvesting” them.
And this brings me to the recommendation the writer made to his membership. If you are realizing gains and fall into the habit of staying in the game only to make unreasoned and unprofitable calls, you would be well advised to rethink your trading strategy. Dealing desk or non-dealing desk, the results will be the same if you let your gambling instincts get the best of you.
If, instead of immediately reinvesting your earnings, you make a habit of systematically withdrawing a portion of your profits you’ll accomplish two things. First, this will more than likely assure your profitability over the long term. Second, you’ll find out very quickly whether the broker is going to want to continue providing you access to the market. If you start routinely taking your profits and subsequently discover that orders aren’t getting filled in a timely manner or your stop losses are more active than ever, trade elsewhere.
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