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Can’t Wait to Take a Profit when Trend Following?

This is a normal response when you have a trade working when you are trend following. However if you can not wait and follow your exact plan when trend following you will end up being part of the 90%+ traders that lose money!

My trading plan is exact…I know what I am buying..I know how much..I know when to exit with a profit or a loss. I follow my plan exactly…over and over again. If I break the rules. I know that I will fail. The problem is you can break your rules and make money( one time or sometimes more). However over the long run you will fail.

The key to trend following and trading for a living is letting your winning trades win. If you can’t wait to take a profit when trend following you will not succeed.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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1 comment to Can’t Wait to Take a Profit when Trend Following?

  • What you have said is very true. The trend is your friend after all!

    Day trading or following signals tested on back data is for sure the wrong way forward. Day trading has its place but only one you have substantial amount in your account which makes small risk worth while trading, You do not want to trading more than 2% per trade MAX. Some of my trades are only 0.5%.

    Trend trading over the long term is the only way to make REAL money in this game and to have the funds to become a full time trader. As you have said trading psychology is essential so as to full your rules 100% but equally important is the ability to understand market structure and natural market movement so as to compound as the trend develops. A top trader does not bother with tops and bottoms but looks to kill the middle. Last year I took 6000 pips over 6 position trend trading the CHF.

    There is the age old argument of nature v nurture. That is if traders are born or one can learn to be a trader. Trading is simple but not easy as they say and with the right attitude and approach to the markets and with the right mentoring I believe anyone can be a trader.

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