They say you never go broke taking profits. No, you don’t. But neither do you grow rich
taking a four-point profit in a bull market.
After spending many years in Wall Street and after making and losing millions of dollars I
want to tell you this: It never was my thinking that made the big money for me. It always was
Have you ever taken a trade that was a bigger winner.... but you took your profits too early eg. close your position before hitting your initial target? Well I have, plenty of time.
Remember, its the seating that earns you the most money. After all, since you took the trade, you must have really been convinced that price was going a particular direction. So why is there a need to secure your profits by closing your trade prematurely if you are are confident of the trade? Does that mean that you were not even confident to begin with? This however does not mean that you do not shift to breakeven at certain levels. What this means is to not close a trade prematurely.
Most traders lose not because they were always wrong but because they fail to capitalize on trades that were big winners.