Dec

27

Along with all my other shortcomings, I have a very strong tendency to aggressively add and hold onto my winning positions for what I believe is "the really big move". Most traders exit their winning trades too early because they trade for average and lack the discipline to watch their profits erode. Markets usually do go further than one thinks, however these excesses can evaporate quickly also.

For me at least, managing a losing trade isn't fraught with much angst. I don't overstay my welcome. I just get out! Paradoxically managing a winning trade is much more emotionally demanding and realizing a large winning trade can be more emotionally destabilizing than a losing trade.


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