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Holding your winners. The holy grail to trading.

Let me start off by reminding you that there are many ways to make or loose money in the market. That being said, how many times have you been in a loosing trade only to watch it continue to go against you the longer you held it. Stop. Let’s take your mind back to that moment. You thought a trade was a perfect trade to take, you got in, then the price started to go against you. Next your down but your hoping it will come back to break even so that you can take your trade for a break even. Next the trade comes close to break even but in a second it runs against you. Yup, so much for that trade. Your pissed. I don’t blame you because I was there myself. Loosing trades are easy to come across because remember, you need to get 4 things right.

1. Entry price
2. Entry time
3. Exit price
4. Exit time.

Let’s reverse it but talk psychology of trading. You enter a trade. It starts to go against you. You then start to see the trade become profitable. You get excited, you sell it off and 2 things happen. First, the price continues in your direction and your kicking yourself saying WTF is wrong with me, why didn’t I hold ! Simple answer. Emotion. The market makers and their algos manipulated the price to install fear in you so that once you had a little or no profit left, you fulfilled your emotion by getting the Fu*k out. To be a profitable trader you need to fight the urge to hold your profits and let your winners run. It’s not ok to just say “Yes I will do this”. You have to start tracking, how much further did your winning trades go and what did the market makers do to manipulate your judgment in order to get to the price.

Day trading is not simple emotionally. The market algos are so darn good that they will fight tooth and nail for each cycle they have the price in to shake you the heck out of your position both winning or loosing. To be profitable I’m sorry to break this to you but you even will have to learn how to fight the urge to push for more profits. The way the loosing trade came back eventually to break even, so will profitable trades. The only difference on profitable trades is we like to lock profits I quicker, then crossing our fingers we don’t loose more on a loosing trade. It is a lot easier to hold and hope (very wrong) and take a massive loss, then to hold and let run, a profitable trade.

Stay sane and never let trading over rule your mental state. If it does, it’s not worth trading. No money is worth destroying the quality of life you live.

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