Traders Laboratory - View Single Post - Discipline Trading: Holding onto winners
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Old 08-24-2006, 06:23 PM
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Soultrader Soultrader is offline
Soultrader is focusing on discipline.

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I totally understand you problem. I had a similar problem when first starting out in the futures markets. I didnt mind taking losses but what got to me the most was watching what could of been profits. I think that hurt me more than anything.

One way I managed to fix this problem was setting new rules for scaling out of trades. I never scale into a trade when day trading but now I always scale out. My current rules are as follows: scale out half at +10, quarter at +20, and last quarter using smart stops.

This way I am able to catch a good move using a quarter position. After taking my profits on the first half and quarter, I just place my stop for the last quarter at break even and leave it alone for a while. I think once you get into the habit of ringing the register and leaving no risk, you are able to sit back and relax and watch a trade do its thing.

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