Leaving trades too early happens to traders all the time.
It is even more painful when you leave early, price turns and goes straight past our take profit area right?
I'm going to give you 3 solid solutions. But I am also going to have an extra 1 for you to download below for free, so make sure you get it.
Trader Smaller Sizes
One reason you could be leaving your trades too early is because what you're risking is more than you would like to.
Lets say you risk £1 per pip normally. This is a consistent, common problem for many new traders because they normally start with smaller accounts. This means they tend to risk more than they should to try and make the money they would like to make.
In the example, psychologically, risking £1 per pip is too much. So you find yourself uneasy in trades. You find yourself micro-managing the trade and always wanting to change something.
Now all of a sudden:
Perhaps the stop loss you had is too far away. Even though it is your normal stop
- Now you need to move your take profit closer because you feel it was too far away
What's happening here is probably down to the fact the risk is too much. And now your psychology is making you doubt yourself, and change things around.
If you cut your risk in half, you will find you are much more relaxed. What it comes down to is your comfort levels. Traders who lose money never relax, and therefore can never allow their trades to play out.
A trade risking £0.50 a pip is much easier to stomach than £1 a pip. A mistake I made early on was using brokers who only allowed £1 risk and higher. I only had a couple hundred and this was one of the reasons I started off bad.
When I started risking £0.10, £0.30 or even £0.50, I started to get better. Not only because I could stomach the losses better now. But also because I had risked £1 already. It now felt as if I was saving money (even when I lost). I used my previous situation as an advantage and you should to.
Set Orders For Your Trades
If you set up an order which automatically opens your trade for you, and set a take profit to automatically close your trade, this will improve your trading.
This way you don’t have to be around when the trade is opened. You could be somewhere else, not even thinking about the trade.
By doing this, you don't really have time to scrutinise the trade or second-guess yourself. (I will touch on this more in solution #3).
I am sort of moving topic slightly here for this next point, but it's important.
The issues I mentioned above with Forex psychology not only effect you closing out trades early. They also effect you even getting into the trades. Setting orders in advance covers both bases.
You can set an order because you know you might be risking too much and are scared to enter and lose. But like I mentioned above, you can also set orders so entry, stop loss & take profit are all taken care of without your help.
You do hear some traders talking about managing the trade. That is very dangerous territory. Unless we are dealing with extreme circumstances which rarely occur, you shouldn't really be managing the trade. The trade should be planned out in advance and now you are just waiting for the results.
Have Faith In Yourself
I really know how annoying leaving trades early is, it has happened to all of us. Especially when it starts moving in your direction. It feels extra painful.
The only way to avoid this is to hold out and let the trade do what it’s going to do. I know this is hard but the more and more you allow yourself to sit back and not intervene, the more comfortable you will become.
If you have made it to live trading, you are doing something not many people get a chance to do. Believe in yourself that you can succeed.
If you don’t believe in yourself, you will never make it.
Download Your Free Bonus content
I did say at the top, I will be providing a free download for one more tip. Download it below. Before you do, please leave a comment below letting me know, which tips above you will be implementing and when you will start.