How to Avoid Taking Profits Too Quickly and Staying with Losing Trades Too Long

[moneymax]

�Most of the time I earn a few pips and close out the trade because I want to catch it while it is still profitable. But when the trade goes against me I will hang onto it too long thinking it will come back to profitability but I get scared and close it out so I end up losing more. And then, what�s really frustrating is that the trade ends up moving in the direction of my original trade. How can I learn to �stick with my trade� ?�

This is a great question and it is something that all traders, especially in the beginning, have a challenge with. It is also something that is gained through experience. ("What is the Number One Mistake Forex Traders Make")

A key thing that a trader must do is acknowledge that you will have losing trades. (Learn a strategy to help stay away from losing trades "Breakouts:How to Stay Away from Some Losing Trades")

If a trade moves against you, as a trader you need to be willing to accept that loss just as you are willing to accept the winning trades. Since you are trading with risk capital, money that you can afford to lose, a trader must be OK with that loss as it will not affect their life style one tiny bit. Losses are simply a part of trading.

(If you are not trading with risk capital, stop trading!)

Once a trader accepts that concept, they will be more inclined to let a trade �play out� and not jump at the chance to lock in a tiny bit of profit or become distraught as a trade begins to move against them and close out the position.

Next, be certain that you are taking only the higher probability trades, those that are in the direction of the trend, and that your entries are based on a solid technical reason such as a break of support or resistance.

When a trader knows that they are trading a pair that is in a strong trend, they will have the courage of their conviction to be able to �stick with the trade� as it is in a strong trend. (This does not mean that sticking with a trade in the direction of the trend will insure a winning trade. It does mean, however, that you will be taking trades that have a greater potential for success.)

Once you have decided on the higher probability pair you will trade and know where you will place your initial stop and limit, when the trade executes�leave it alone! Promise yourself that you will only let the trade limit out or be stopped out.

Lastly, be sure that you are following the principles of Money Management. So when the losing trades occur, your losses will be small and manageable.

Practice this discipline many, many times in a Demo account until you become comfortable with it.

Indeed, with proper money management is the foundation and principles of a trader. Is based on the exact time of losses, profits, and floating will be faced with the usual and reasonable because it is a risk that must be faced by every trader

[ishvara]

In order to avoid this particular kind of losses, a forex currency exchange trader should know that they should always set up their right lot sizes, stop loss and then take profits. This helps us to allow our trades to exit before we get huge losses.

[naijafxpips]

The best solution to the above mentioned problem, which is taking profits too quickly and staying so long with losing trade is by applying defined take profits and stop loss. When i mean defined, you must have worked out how much pips you target every trading position and also set out how many pips you are willing to loss.

[oreoluwa]

alright thanks very much for you time taken to give out this useful analysis i know this will really help go a very long way in the forex market and Avoid Taking Profits Too Quickly as for me i don't really wait to get much profit in the market but learn to take the little profit i can get from the market

[malik]

Sirf discipline aur emotional control sya hi aap apny is problem par qaboo pa sakty ho, aap kay liye best solution hay kay aap bohot wider TP kay saath na trade karo aur apny orders ko stop loss aur TP set karny kay baad decide hony do. Agar aap hud ko control naheen kar paty to apny computer ko ban karo aur bahir nikal jao trade ka result baad main check karo.

[selinabegum]

Keen displace and i think every dealer should learn this discipline and should play the rules, the whitener of the job is to lever with your restraint sum and TP targets and let the exchange run unless it hits your targets.

[rubel3]

yes, you are right, if we do not use the good money management on our trading ,maybe we can being too dangerous for our trading , so it can being better for us to let us use the good money management on the trading.thanks..........

[tom11]

yes, you are right, if we do not use the good money management on our trading ,maybe we can being too dangerous for our trading , so it can being better for us to let us use the good money management on the trading.good luck.....................

[mariaarsalan]

thanks for the post .. ye bhot helpful hai hum sab trader k liye agar trader in rule ko learn krly ga toe wo kabhi bhi trade main lose nhi kary ga main in sab rules ko learn krlungi taky mjhy insy faida ho

[milan]

ofttimes, we can not have the losses we see. because it is hominid nature to not need to recede. but, we should realize, that in any sector, the potentiality death or probability is sure there. we should be healthy to slim that assay, not eradicate it.