I suffer from a very common problem.. I exit trades too soon. Sure booking profits is great, but I know I can do better. I am profitable, just always looking to improve. I swing trade options. I think one issue is looking at the charts all day long, even though I will not exit. I think it provokes me to take a profit when there is more room left to go. anyway,, I am looking for some pointers on how to deal with this.
One technique I use, is as soon at I make my entry, I pull up my Chess program and enjoy Chess puzzles. It's helped me to not get hypnotized by constantly watching the screen. It allows my position the needed time to move to a stronger position..IF the market continues in my favor.
great idea... distract myself. I do still have a day job and that helps,, but I work from home and work when I want so there is not a boss looking over me, etc..
%% Better to exit too soon than too late; unless one has a good trend or super trend or investment . Can always get back in, liquid markets, but i dont like last minute drama, seldom pays enough. Time measure helps; metals dealer goes to lunch + closes the cash payday window then
Don't exit soon, run to BE soon. Relax when your risk is zero. Move your profit from price rotation to price rotation in lower TF chart.
I am with you. Most of my losses were because I hung on for too long, profits -> losses, or holding, hoping losses -> profits but loses skyrocketed instead. Things actually got better when I tried 1+ or 2+tick, and/or @volpri's scalping technique.
Hello Jdesey, You are doing the right thing. I hate manual swing trading. It is very stupid to me and a waste of time.
i do not think anyone can help you. because this is the most difficult part of trading and one that you learn last ,if at all you learn. i have now reached the stage WHERE EVERY ENTRY I MAKE IS A GOOD one and gets into profit but sometimes end with a loss if i hold too long. i have also learnt to put extremely tight stops of around one point which are also technically correct and so do not trigger without getting into profit first, unless my rational for the trade was wrong which is how it should be. i do not decide the target but plan to exit on the basis of market action. But sometimes the market action is vague, but does not justify taking profits, so i don't and market turns on a dime and in that case my stop gets hit. my losses are much less than my profits so i do ok my advice is regularly take profits ,or take part profits and let the other part ride but do not change the stop to break even because it is my experience that ES and maybe many others, test breakeven stops and even trigger them
You should post this posting in the PSYCHOLOGY session. You deliberately left out the vital information and that is about your emotional stage (or perhaps you don't have any emotion?! But Only dead people have no emotion). You did not tell us - how patient/impatient you were - whether you were fearful / worried / scared that the trade might end up negative and hence you'd rather take a penny rather than suffer a loss Trading involves 3 Ms (Mind, Money, Method). All the 3Ms must work in tip-top condition. There is zero mention of the MIND and that could be your obstacle.
Get yourself a nice-looking girlfriend, and look at her instead of staring at the charts all day long.