I’ve tried to put in some trades and I’m having a problem with taking profits too early. When a trade is going my way I get anxious and take profits prematurely. if anyone has had this issue, how did you get past it?
Do you have a trading plan before entering your trades?
This might be of help though:
This is an unanswerable question if you give your focus to the entry rather than the set-up.
So classic TA says many entry patterns will have an inherent target price e.g. for a head-and-shoulders the target is derived from the distance from the highs to the neck-line, and so on. In other situations the target is found from the chart rather than the pattern itself, so, just below resistance for a long and just above support for a short.
This question is avoided pretty well if you just follow the trend. Getting out early then becomes just another opportunity to get in. Plus you can incorporate a further confirmation signal if you’re hesitant about whether the trend really will continue / resume.
This is a psychological problem fear of losing profit also holding on to losers hoping they will turn.
Good book on this subject (yes, I know plugging it again )
Best Loser Wins Tom Hougaard
It is a must read!
Close 30-50% to take profit, move S/L to breakeven and let the balance run with a trailing stop.
Generally, those who are scalpers take profit too early. In this case, the profit ratio remains narrow.
profit is profit ,just take it ,reenter your trade later