When you’ve taken a trade – Let It Go!One of the key principles of successful trading is…
Once you have taken the trade to just let it go and allow it to run its course.
The system lined up – tick.
The entry orders are all in place – tick.
It matches your risk and reward criteria – tick.
You know your trade size – tick.
Now let it go.
You may get the urge to interfere, change the levels and lock in profits early or limit losses even more.
You need to resist the urge.
Here are some factors to consider…
Don’t Interfere…
When you’ve taken a trade, it’s important to have a plan in place for how you will manage it.
This means you’ve got your entry, stop loss and take profit in place.
These actions may seem like a good idea at the time.
But they can often lead to bigger losses, smaller profits and even missed opportunities.
But then there are times where you need to adjust the course.
You might even have a time stop loss.
Or a strategic and mechanical criteria for when to adjust your levels.
But other than that, you need to have the discipline to stick to it and resist the temptation to interfere with your trades.
Don’t Get Excited When It’s in the Money
One of the most common mistakes that traders make is getting too excited when they’re in the money.
You might feel overconfident and “know-better” about a trade.
Or you might have this irrational decision-making idea to quickly move your stops and take profits, which can quickly erase any gains that you’ve made.
It’s essential to remain level-headed and stick to your plan, even when your trades are performing well.
To avoid getting too excited when you’re in the money, go back to your journal and look at how your trades have played in the past.
It’s important to have a clear idea of your risk tolerance and profit targets before you enter a trade.
This will stop you from making any quick and unnecessary decisions along the way.
Don’t Fear When It’s Going Against You
Another common mistake that traders make is letting fear dictate their decisions when a trade is going against them.
It’s natural to feel anxious when you’re losing money.
But it’s important to remember that losses are a normal part of trading. We all take them and we are all bound to take them more times than we wish to think.
To overcome the fear of losses, it’s important to focus on the long-term goals of your trading strategy.
One way to do this is to maintain a positive mindset and view losses as “costs of business” and as learning opportunities rather than failures.
Stay calm and level headed. Also stop risking so much that it interferes with your psychology.
When you feel emotional take a step back or it could lead to even bigger losses.
Don’t Watch Every Tick
Finally, it’s important to resist the urge to obsessively watch every tick of the market.
This can lead to overtrading and emotional decision-making.
And you’ll find it will quickly derail your trading strategy.
Instead, it’s important to focus on the big picture and have a long-term perspective on your trades.
Close your computer once you’ve taken a trade. Or close your trading platform and move onto something else.
You’ve done your job now stop watching every tick the market moves.
By doing so, you’ll be less likely to make rash decisions based on short-term fluctuations in the market.
I hope this helps and if there is one thing to remember out of them all.
When you’ve taken a trade, just let it go and let it run its course.
