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The Hardest Issue for Trend Traders & Stock Traders

What I have found is that one of the hardest issues for Stock ‎traders & Trend Traders is to have the patience to let the trade work. Once the trade starts ‎working or trending fear or greed kicks in and there is the urge to lock ‎in the short profit as a pose to letting it run. This will have devastating ‎effects on a traders account. Most trades do not work when one trend ‎follows and cutting profits short is the direct route to failure in trading. ‎One must have these rare big winners to offset the multitudes of trades ‎that do not work and incur (hopefully) small losses. The reality of trend ‎following is doing the uncomfortable. Trend following requires work. ‎This work is developing your patience and discipline to let these trades ‎run their course and not cut them short due to fear or greed. It is very ‎easy to ring the cash register and then this leads to another major issue ‎of disappointment. Can you imagine you had a trade that was working ‎and out of fear or greed you took your quick profit only to watch it ‎afterwards hitting multi year highs or lows. This is the reality. Trends ‎go to extremes. Do not feel bad. This is human nature. I once heard a ‎lecture by Leo Melamed from the CME who spoke about a silver trade ‎he was in. Leo Melamed was the chairman of the CME and he exited a ‎silver trade during the Hunt brother’s escapade thinking that it had ‎gone far enough. ‎

The Hunt brothers tried to corner the silver market in the late 1970s. ‎Silver went from $11 dollars to $50 dollars during the Hunt brothers ‎manipulation. Fortunes were made and lost. ‎

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (“FOREX”) IS SUBSTANTIAL.

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