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I exit too early...

  • #21
  • Apr 10, 2010 8:49pm Apr 10, 2010 8:49pm
This is a common problem, here are some suggestions:

1. Reduce your risk as low as possible. Doing so takes the edge off of fear of loss. As you develop as a trader you can increase your risk.
2. Clearly define your reasons for getting out of a trade. You have your reasons to get into a trade, make sure you know exactly why you should get out. The more specific you can be the better your odds of staying in when you should AND getting out when you should.
3. Evaluate your trades every week. Don't be overly critical on your mistakes, they happen and it is a part of learning to trade. If you got out based on emotion, make sure you evaluate why. Eventually you will get to the point of following your rules without emotion.
4. If you have your stop set and (for example) you are trading the 4 hour chart, is there really a reason to sit in front of the computer for hours on end? Nope. Walk away and come back in 4 hours (or longer) to re-evaluate the trade. I have made more money away from the computer than I ever have in front of it.

That's all I can think of right now without getting into some pre-mature exitication jokes. LOL!
  • #22
  • Apr 11, 2010 3:51am Apr 11, 2010 3:51am
Quoting magnumfreak
This is a common problem, here are some suggestions:

1. Reduce your risk as low as possible. Doing so takes the edge off of fear of loss. As you develop as a trader you can increase your risk.
2. Clearly define your reasons for getting out of a trade. You have your reasons to get into a trade, make sure you know exactly why you should get out. The more specific you can be the better your odds of staying in when you should AND getting out when you should.
3. Evaluate your trades every week. Don't be overly critical on your mistakes, they happen...
)

You sound like a very experienced trader and this is some good advice. Thanks! Like i stated above, i will exit properly next week (dont start again lol). If i stop posting in this thread until the next monday, you guys should prolly assume that i've lost my whole account. Another reason why Forex is such a perverted market: by Saturday you feel like crap because of the mistakes u made that week, but 2 days later, at the start of the new week, ur confidence is back up and ur ready to start doing the same mistakes again. Hopefully, i learned my lesson.
  • #23
  • Apr 11, 2010 8:48am Apr 11, 2010 8:48am
Alexone...If exits are your only problem..why don't you have someone else close the trades for you..maybe someone in your family...It might just help as you will then have to justify to yourself and the trade executor on why you want to close the trade...
  • #24
  • Apr 11, 2010 3:06pm Apr 11, 2010 3:06pm
There are already some very good answers here, e.g. setting targets and walking away (pipmutt, magumfreak); have somebody else exit for you (Eklavya); run multiple accounts (LasVahGoose).

Here's a great post by Dopey. I particularly like the idea about punishing oneself (I keep a leather whip under my desk, LOL) by banning trading for a day or two. If you don't have the discipline to follow that rule, have somebody who lives with you hide your mouse, so you can't use the computer at all. I guarantee that will work!

I use an EA that exits part of my position using an ATR-based trailing SL. (I can't post it here, because a client paid me $$$ to develop it). It's not just because I want to eliminate psychology from the equation; it's also because some of my trades last several hours, even days, and I can't sit at the computer 24/7. There are other trade management EAs posted on the forum (e.g. here and here). You might like to try them.
  • #25
  • Apr 12, 2010 12:11am Apr 12, 2010 12:11am
I use to have the same problem too. Then i added a new section in my trade journal, recording all the trades i got out early, and of those trade how many of them hit my TP, after a month, i added up the amount of pips and realize my system works. Although I net about 400 pips, I could have made an extra 757 pips if only i traded my plan. So i wrote that number down on a Sticky note to remind me to be confident.. "Plan your trade, trade your plan",i look at it every time i have the urge close early on losing trade, or take the easy money. Also, once a trade goes in my direction, and once i'm able to set me SL to break even, i would just walk away from the trade, and let it take care of itself.

A book to read, Trading in the Zone, It help me with the psychological discipline required in trading
  • #26
  • Apr 12, 2010 3:20am Apr 12, 2010 3:20am
How about not watching the screen? If your strategy is for you to set up your stops/limits and let it happen, watching the screen definitely will make you itch to get into the market and do something premature

Force yourself to walk away, go cook something, kick a ball around, something!
  • #27
  • Apr 12, 2010 5:22am Apr 12, 2010 5:22am
Quoting Alexone
...And i know it! Cant seem to do anything about it! Hi! I cant seem to find any relevant threads on this subject. I am a newbie in Forex and already i have this major problem i am confronting with. I dont let my losers run and cut my winners short, instead i exit early on both situations. Now for the losing transactions that isnt a problem...but it happened more than 5 times on my winning trades and it started to frustrate me. Are there any books/articles/advice/threads that you can give me other than 'Dont do it'? thank you!

I have to mention...
You say that You exit too early. Easy answer. Do NOT exit too early next time.
  • #28
  • Apr 13, 2010 9:31pm Apr 13, 2010 9:31pm
Quoting LasVahGoose
Trying running 2 platforms and putting in the same trade in each. On one platform set your take profit and don't touch it (your plan and rules). On your second platform keep doing what you are doing. Then compare the results.
very analytical to know whether one needs a hammer or a mower or can continue sitting before the screen LOL
  • #29
  • Apr 14, 2010 1:34am Apr 14, 2010 1:34am
Traders who exit too early usually are not utilizing their Stop Orders for protection. As a trader, we need to develop discipline and accept that not all trades will be successful. For a trader to become successful, that trader needs to accept the fact that risk is involved and need not fear the market.

A solution to early exits would be to adjust your Stops to break even. By doing so, you'll have no fear as for the outcome of your trades. With break even stops you'll either make money or your position will close out at zero (no losses to you). Of course this all depends on choosing the right direction to trade. If you didn't choose the right direction then at least you'll have your stop order in place to help limit your losses.

This is what trading is about. You lock in your profits while limiting your losses.
  • #30
  • Apr 14, 2010 4:42am Apr 14, 2010 4:42am
Quoting Jhig
This is what trading is about. You lock in your profits while limiting your losses.
As one successful trader put it, "Trading is about getting free trades..."
  • #31
  • Apr 15, 2010 12:08am Apr 15, 2010 12:08am
THINK OF IT LIKE SEX ...YA GOTTA WANT IT AND GO ALL THE WAY!.TIGHT STOPS...YOU HAVE TO REMEMBER THIS IS A FN TOUGH BUSINESS EVEN WHWN YOUR SOBER. TOO EARLY--no pleasure... too late and you miss the run. Too big of a stop your account disappears. too smalll and you miss a lot of runs...chop is death. trends turn. Days of hell turn into days of pleasure. GOTTA SEE IT THROUGH! > just remember. nobody and I mean no body knows where the market will go....outside of the insiders so you have to trust your plan!> I run pure ea..and I can tell ya.. there are very few perfect edges. so when you catch the market in a trend; ride the horse out.
  • #32
  • Last Post: Apr 16, 2010 2:52am Apr 16, 2010 2:52am
Ok, week's done...i dont think i made any mistakes according to my system, (or at least any big ones), though i ended a little over breakeven. This week, I learned much about self control , especially because of the eur/usd pair. Thank you again! Still, i know this is just starting and i have a long way to go, but i'll get there eventually.

P.S: there are many good answers here and i think they should help a lot of ppl that are struggling with the same problem.
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