One of the things I’m trying to be better at this year is letting my winners ride.
In the past, I would often look to reduce my open risk in a winning trade too quickly because I was fearful of giving back hard won gains. I would let my emotions or my PnL dictate when I should exit a portion of a winning position.
Letting my emotions dictate anything is often a recipe for disaster – certainly for me.
Emotions are not an objective reason to exit a trade. We need to let PRICE tell us when our trades are invalidated or vulnerable. Price doesn’t lie, but emotions often do.
Easier said than done. Especially right now. [Read more…]