Premature Extrication!
Ah, the little people playing games - again.
If the reason you are exiting early is because you are afraid of missing out on profit - any profit - or worse, you are afraid of missing out on any profit and afraid that price will reverse, eat your (partial) profit, hit your stop loss and leave you with a loss for the trade then:
Try splitting your entry into multiple smaller lots and set a variety of partial profits on some of the positions. This will help placate the little people. (It also often lets you get back into the trade over and over again taking small profits multiple times before the actual run to the target S/R that you were initially targeting). If it doesn't reach you original target, you can still come out with a small profit or, at worst, a really insignificant loss.
Here is an example.
I'm waiting to see if price whizzes back down the CC or if it breaks. Either way, I'm perfectly happy (and will sleep well tonight!) as I have closed 3 of 5 trades within the green (CC) area. I'm collecting interest, so I don't really care how long it takes from here, but I do know that one of 3 scenarios will happen:
(i) It breaks up - I'm happy. I have money on the table.
(ii) It heads south but doesn't close below the green area: I'm happy, as I can look for re-entry.
(iii) It heads south and keeps going south - and this trade is over. In this case, I get out - I'm still happy as I have some profit already booked and I look for the next trade.
Ah, the little people playing games - again.
If the reason you are exiting early is because you are afraid of missing out on profit - any profit - or worse, you are afraid of missing out on any profit and afraid that price will reverse, eat your (partial) profit, hit your stop loss and leave you with a loss for the trade then:
Try splitting your entry into multiple smaller lots and set a variety of partial profits on some of the positions. This will help placate the little people. (It also often lets you get back into the trade over and over again taking small profits multiple times before the actual run to the target S/R that you were initially targeting). If it doesn't reach you original target, you can still come out with a small profit or, at worst, a really insignificant loss.
from trogger #Post 1319
Here is an example.
I'm waiting to see if price whizzes back down the CC or if it breaks. Either way, I'm perfectly happy (and will sleep well tonight!) as I have closed 3 of 5 trades within the green (CC) area. I'm collecting interest, so I don't really care how long it takes from here, but I do know that one of 3 scenarios will happen:
(i) It breaks up - I'm happy. I have money on the table.
(ii) It heads south but doesn't close below the green area: I'm happy, as I can look for re-entry.
(iii) It heads south and keeps going south - and this trade is over. In this case, I get out - I'm still happy as I have some profit already booked and I look for the next trade.
Keep DISCIPLINE, control RISKS, and don't destroy your DREAM easily.
