'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Tuesday, September 20, 2011


Let your profits run?...

That's the common wisdom being preach by most great traders.

But for not quite seasoned traders who are still learning the ropes in trading, that can be hard to distinguish/implement.

First, there is what you call "euphoria".

Especially for newer traders, whenever a trade showing positive result without any target exit plan, they are bailing out too soon/early.

Suddenly after getting out, you will be surprised the price keeps going up.

That's all common to all traders, especially those who are trading without a plan.

But there are some problems why traders bail out too early which differs to each individual.

It all depends on how you deal with it and training your brain with the market psychology.

Reading the markets is one trait that cannot be ignored about.

Lack of capital is another reason, since if you are not used to losing, there is a tendency that whenever you see a green amount in your P/L, you are prone to closing a trade.

That can be considered "greed" in trading.

In sum, what I emphasized is the "fear and greed" which is a common subject in trading.