Many traders make all or nothing decisions when they place their trades.
Everything is staked on picking the right entry point, and then getting the exit price exactly right. If they get either the entry or exit wrong, they get stopped out, or have to sit idly by while watching their profits evaporate.
Why not just stop trying to be right, and start flowing with the market instead?
If you have an idea for a trade, don’t stake your life on it. Take a small position, with a stop that is not going to get you knocked out by noise. If the market goes for you, add a bit more. If it starts to go against you, take a bit off. If it goes in your favour again, add it back on. Just watch what the market does, and trade what you see in front of you.
Once it gets to your profit target, chances are that you have not picked the perfect one, so just take a bit off, then watch what happens. Continue to scale out, depending on what the market does. No more feeling like you have missed out because you took some profit.
About the Author
Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders. He is a part owner of Forex Signal Provider fxrenew.com (You can get a free trial). If you like Sam’s writing you can subscribe to his newsletter for free.