Are Patient with Winning Trades and Enormously Impatient with Losing Trades.
This first habit is straight out of Dennis Gartman’s (TheGartmanLetter.com) trading playbook. Most traders become very anxious with winning trades because they do not want them to become losing trades. That is a good thing – until their impatience forces them to exit their winning position too early and leave money in the market. On the other hand, how many times have you said to yourself, “I am going to let this losing trade go just a little bit longer and see if it turns around.” You have just been patient with a losing trade and impatient with your winner.
Wealthy traders flip this thought process around and do exactly the opposite. When they have a trade that is going well and is profitable, they remain patient to see how far it can really go. When they have a trade going against them, they immediately exit to limit the loss and begin looking for the next opportunity. If you have set a stop loss, never move
it in the hope that your trade will turn around – it rarely will and will only increase your loss for the day. Start being patient with your winners and impatient with your losers – it is the first step toward joining the minority ranks of wealthy traders.
( To be continued...)
Source:www.tradersonline-mag.com