It is all about discipline and patience. It is also good to have a trading plan with exit strategies properly laid out. All that is left to do is, stick to it.
There is no harm in closing trades early, just the returns will be less but with that risk too. Better trading strategy with carefully examining the support levels can help you to set SL slightly better.
Generally, it’s very risky to hold day trades overnight. Even with a losing trade, it’s usually better to close out and start fresh with new trades the next day. Several factors can affect a stock overnight, meaning that the risk of significant loss is as high as the chance of a big gain.
It is better to close trade earlier than never.
My best tip on it would be setting TP and SL for your trade so you can avoid checking it frequently, the more frequent you look at it, the more likely you gonna be tempted to trade early
the basic indicators are repackaged moving averages.
a moving average is a memory of the past, not an indicator of the future.
the basic indicators will never predict the future, but instead they are a memory of the past.
Some traders are afraid of huge losses and then they are tend to close positions to early. In my opinion, it isn’t a huge mistake but it resticts your ptential income. If you have set the stop loss ordered, then you shouldn’t be afrai of huge losses. Another option, when you don’t use stop loss orders and are tend to trade on your own. It’s not recommended fo r traders as I think, because it can easily devastate your deposit, as well as trading with high leverages. I sometimes prefer close the position early, because I’m not sure in its liquidity. Fortunately, it hapenns rarely in my trading activity.
I close trades early almost every day. Even though I have a rock solid exit strategy I can always use. If I’m in profit and have met my daily or monthy profit goal, I close trades and proceed to have a wonderful, stress free day.
Honestly, you just help me to know the problem I have been facing since many years of trading.
Good to hear these.
As long as one does not overdo it, I believe that using indications in combination with one another occasionally is perfectly acceptable.
I’m using 6 right now. A support and resistance, a smoothed Heiken Ashi, Indo Trend, I Compass, PSAR, and a 100EMA as a filter for entries.
But at least I have disregarded many that I used to use.
I follow a proper plan and decide my entries and exits for my trades. This method helps me in resisting the urge to close trades early.
I can choose when to enter and exit trades with the help of the right strategy and planning. this helps me in trading cautiously.
The market is unpredictable most of the time so I suggest you make the best of what you have and take time to make decisions. Analyse and scan the trend and the way the market moves, if you think according to your strategy, you will make profit, then hold. If not, exit and save capital from loss.
The lack of precision in where to exit a winning trade leads to two possible responses - either stay in the trade until its dead, or get out early and bank the profits. Letting the winners run in a trend means you can pyramid the original position: getting out early means you can get back into the trend again asap.
Some general statistics might assist. The average length of a run of consecutive higher closes in forex is 2 days. About 50% of days with a lower close are followed next day by a higher close. If you see two consecutive higher closes, the probability of a third consecutive higher close is about 30%. The probability of a fourth consecutive higher close is about 15%. The probability of a fifth consecutive higher close is about 5%.
1: let your trade run close off your monitor
2: have a set of criteria to exit if those are met, this will be your exit critieria.And of coz if the price run more in your favor after that…move on pls.
Unless of course you have utilised something you’ve picked up from the chart in your TA which skews the probabilities in your favour…
I think it’s a common problem that new traders face. We just feel the urge to close the trades as early as possible to feel relieved. It is hard to fight this urge and let the trade run on its own. You may need to leave your screen and focus elsewhere so that your trades will close automatically once it hits SL or TP.
Yes, this is a problem for the majority of traders. To avoid risk that you cannot bear, I believe it is preferable to trade & use stop loss.