7. The urge to exit a trade too early Archives

 

This is a trader question from the Fibonacci Trading Forum.

Bert says:
What would make the biggest difference to my trading?
Being consistent, staying with trade to completion and minding the trend.

Neal responds:

That’s great, you know how to boost your profits! Make a solid trading plan and stick with it.

What if you can’t stick with your trading plan? Every time you break your trading rules, stop trading for the rest of the day. If that doesn’t help, stop trading for a week. That should give you some incentive to stay with your trading plan…

-Neal (FOREX Fibonacci Trading)

Trust your trading plan, or change it

 

This is a trader question from the Fibonacci Trading Forum.

Hussam says:
What would make the biggest difference to my trading?
- hanging on to winners until they hit target. Pure mental issue.

Neal responds:
Haha! This is a real problem. When we have a winning trade, it is so easy to bank those profits! There is a human urge to cut your profits and let your losses run. Traders have to manage these impulses all the time. We must trust our trading plan, or else change the trading plan.

If you have a clear exit trigger, then stick to it! Try to print it out, have it next to your trading station, or write it down, and keep referring to it. Only when your exit trigger gives you permission, should you exit.

If you are not satisfied with your exit strategy, you may have to review it. Until then, stay with your trading plan. Perhaps you should plan for a partial exit to take away some of that stress?

-Neal (FibMaster’s Fibonacci Trading Course)