
Originally Posted by
Kadiri
I have heard a lot of talk about letting your profits run and cutting your losses and the same people who advocate this position often also tell us how to have confidence in trading and also how not to be greedy and again how not to be fearful, at and the end of the day we wonder: What exactly should we do then?
If you are a good and professional trader you will know how to split trades and run reducing lot size positions on multiple trades but this post is for the NEW TRADER. If you let your profits run just because you think the trend might continue, such profits might simply just RUN AWAY, and you do not want that. The simple solution is to have a target for Take Profit and stick to it.
If you choose to always cut your losses all the time, you might just be cutting short a lot of winners. You must and should have a stop loss for your trades and then you should always allow such trades to run the logical conclusion. This is the part where risk comes into play. Do not allow FEAR to get a hold of your trading.
When you begin to employ fear tactics or greedy emotions in your trading, it will be difficult to make any real progress in this business.
What do you think fellas?