One of the trading aspects I find most difficult is letting a trade ride. Often, once I am firmly in the green or firmly in the red, the temptation to modify or exit the position is immense. While it may be ok to alter the position’s size or shift a stop, exiting a trade early has cost me considerable profits.
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That being said, my top trading lesson for 2018 is to remember why you entered the position in the first place. Listen to your analysis and stay true to your trading style and typical timeframe. Write and highlight your key points and levels down if necessary but stand firm on your original idea and levels even in the face of blossoming profits.
–Written by Peter Hanks, Junior Analyst for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX