8 Common Problems That 90 % of the Traders Face
Problem 8: Letting winners turn into losers
Avoid selling a trade that has lost the ground, because of an emotional attachment is formed toward the paper profit generated.
Causes & Solutions:
We would have come across a trade that makes us a massive profit and we started to count the unrealised profit every day as if they are ours before we exited the trade. When the market started to turn the opposite direction we refused to sell it because we have built up an emotional attachment to the unrealised profit we have seen.
Instead of selling the stock and lock in some gain, we opted to hold for the trade to back to where it used to be and promising to our self that we will liquidate it when it came back to where it was. Eventually, the trade never came back and our gains turn into losses. Despite swearing to our self that we will not do it again, but without some rewiring our mind, we probably will.
The solution is to not count the profit when you are still in the game. They are not yours until you take your profits. Avoid watching your profits also can avoid the emotional attachment to the paper profits, allowing you to have better clarity to take the exit door when the markets or your trading plans tell you to do so.
Last but not least
It is impossible to overcome all your mental obstacles just by reading books or watching videos alone. It requires hours of practices and dedication in order to get your mind reprogrammed. Without this, you will end up making the same mistake you promised yourself not to again and again.
However, with the right framework, this can be done effectively and save you from years of trials and errors, it also means money being saved from giving it to the market.
Learn how our "core of successful trading framework" that helped hundreds of traders around the globe obtaining consistency in trading in as short as 3 weeks time.