I was working with one of my Forex students in London last week after class. The student had taken a large loss in his trading account and was now taking very small gains. He knew that he was making great entries but kept fearing losing any gains so he was cutting them short.
This is a common theme with many traders. They become obsessed with not giving back any winnings that they do not allow their winners to grow. Without medium or large winners, you stand little chance of overcoming any small losses, let alone large losses that may occur in your trading. So how does one conquer this fear and allow the winners to blossom?
It may not be easy, but you can start by removing yourself from the equation. Most trading platforms will allow you to set up your entry order, your stop order, and your target order all before you enter the position. If you do not have to watch the position, you will be less likely to cut the… Continue Reading
