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Are you having the problem of cutting winning trades too soon?
Don’t fear failure, but low aim.
Bruce Lee
I use to always have this problem of holding onto losing trades way too long, and cut my winning trades too soon.
A lot of it is because PTSD from previous losing trades.
There’s been plenty of times where I get into trade, and it immediately takes off. That PTSD sits in my head, telling me that my trade could reverse on me at any moment.
At that point is just my emotions talking, and dictating the trade.
Here are a two strategies you can use to not sell winning trades too early.
One of the best strategies is to review the chart technicals and check if the trend is going in your favor.
We, as traders, know that price action goes up and down–never linear in one direction.
Get familiar with trading strategies such as bear and bull flags, or double top and double bottoms.
If the technical is still in your favor, let the trade run.
Another strategy is to have multiple sell targets.
Every time you hit a percent or price action target, sell a bit of your position at a time. This way you can capitalize on higher returns on each contract.