Is leaving money on the table something to worry about in your trading? To answer that question simply the answer is Yes, but you have to let it go and not dwell on it. I know that all the Forex Trading pros say let your winners run and cut your losers short and they are right. But, and this is a very big but, any trade is a good trade as long as you are positive. I was having a discussion with a trader last week and he was upset because he said he lost $1,200.00 on a trade. I would be upset about that also that is a lot of money to lose on a trade. As I spoke with him I learned that he actually did not lose 1,200 but made $600. The reason he said he lost 1200 was because he got out of a trade early and was counting the lost profit as a loss.
This type of thinking is not good for a trader and you should train yourself to not think like that. Being a trader is a mental war, and you must train your mind for success or you will lose. We all trade to make money but we must train ourselves to not think about what we could make but instead focus on what we made. I have been reluctant to take profits several times and it has hurt me because at that moment the price turned against me and I lost my profit.
If every time you close a trade and the price continues to move in your favor, you get upset. That type of thinking will cause mental anguish. I always look at my performance at the end of the day and I am thankful for what I made and let it go. I still get the temptation to dwell on the “what ifs”. For example I had one of my best trading days of my life Friday and I was hanging out in our premium trading room. I took profit small profit on a Usd/Cad short that reversed, I got out too early and the pair ran another 50 pips. Even though I had the best trading day ever I was still wanting more, and that is what happens with the spirit of greed.
If you are worried about leaving money on the table there is one method that you can employ and that is open multiple positions and then take profit at certain levels. For example open up 3 lots and take profit at 10 pips then at 50 pips and then again at 100. This way you can get allow your winners to ride and get more profits. However there is one drawback to this strategy and that is that if you take profits on your first position at 10 pips than move your stop to break even and the price moves against you than you only get 10 pips on one lot rather than 10 pips on three lots. This method is potentially cutting your profits down by 2/3 on each trade.
Winner’s Edge Trading, as seen on: