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

[waleedkhan]

�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 u 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.

app logo kaisa apna profit qucikly zayda karah sakta hain wasa tu yah kafi acha topic hai kay hum kaisa apna profit ko hasil karah sakta hain aur is ko kaisa kaam may la sakta hain humaya chiya ka hum achi trading karain aur achi si achi icome hadil karain.

[ashwini]

yes its happend. why this hapaen to us..there are many reason i am given some of them here.
1. we are not accept the market is turn.
2. we cannot follow the resistance and support level
3. we are not follow the news.
4. we are not use the stop loss./
5. we wait for long term but cause of use of high leverage .. we loss every thing. before market is change in favour us.

[moti]

one of the mistake traders are doing is when they place an order so they are expecting that the market have to go that direction always.and when some pull back happen they will quit immediately then they can see that their canceled target will be hit later on.so we really dont have to blame the market.we have to accept the nature of the market and study on it.then everything will be better.

[Nabi Ahmed Gill]

�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.

Mara bahi trading main ap ko taking profit ko avoid nahi karana ha balka stop loss ko avoid karana hota ha main ap ko bata hon k is ke waja ka ha w ya ka agr ap stop loss ko qout karata han or ap loss tak bounch kar market sa bahar a jata ho or usi waqat ak mint ka bad market uper chali jati ha to ap ko loss to ho ga he jo ho ga lakin ap ko afsos both ho ga .

[abeda16]

hummmmein yeh bat malum hay ke forex se hum quick profit kama skenge.Isi liye sayad quickly profit taking ko avoid nehi karte hay.Lekin hummein yeh baat to malum hay ke quick take profit se humara quick lose bhi hoaga.Aur hummein quick losing trade main jada der tak nehi rehna chihye isi hum aapna pura balance kho sakte hay.

[iwan]

I think that our emotional problems, many of the traders, especially beginners is difficult to control. we have to look long trend to convince themselves that the trend is still continuing or has expired, and then decide to close or continue trading so we get maximum results.

[scorpian7]

very important post . I also have a habit of taking profit early and accumulate my loosing trade . To avoid it sickness to money management is very important .

[newentry]

yes, this is very good thread, most of traders will close their orders with faster to avoid the trend move back and against their order but if they have known the right time for it then they will get more than it and it is not about the greed but how to maximize their earning,so for it they have to know the true trend to see the point for entry and also exit point, for it need good strategies and analysis and they are supported by good discipline and patience

[tajdarbet]

�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.

ye sirf aese ho sakta ha k app es main experince or knowledhe hasil karo kioun k app ko pata ha k forex trading main experince or knowledge k bagher app apne emotions ko control nahi kar sako ge or emotions ki waja se he app kaam pips pae take profit laga letey ho or hogh pip par loss utha letey ho

[leo]

I also agree with your opinion ... Forex is an investment, so-called iterative risk to ... Humans do not want to lose in a trade, but if for example we have it, we must think how we react to it, and that one day does not happen again,,, that's the first capital, and with resolve and discipline, we will be able to control emotions and got results consistent profit,,