Trading Problem #7 - Letting Winners Turn in to Losers
The final trading problem that I want to focus on is allowing winning trades to turn in to losers. Many of us have probably had a time when a trade was making big loot, and we started to count the profits like they were ours before we exited the trade. When the stock started to lose the ground it had gained, we avoided selling because we had built up an emotional attachment to the paper profits we had seen.
Instead of selling the stock to lock in some gain, we opted to hold out for the stock to go back to where it used to be, promising to sell when it came back to the point where we felt good about the trade. The stock drifts lower, and eventually the gain turns in to a loss. We ultimately sell it at the bottom, swearing never to do it again. But without some reprogramming, we probably will.
The Solution
Like Kenny Rogers used to sing, “Don’t count your money, when you are sitting at the table, there will be time enough for counting, when the dealing’s done.”
Do not calculate your profits before you lock them in. Avoiding the profit watch will help you avoid an emotional attachment to the paper profits, giving you greater clarity to take the exit door when the market tells you it is time to do so.
I hope this outline of mental problems and some solutions helps you become a better trader. The difference between those who succeed in trading and those who fail is not the system they play, but how well they play it. Your mind is a powerful thing, don’t let it beat you in the market.
Parting note: 
I enjoyed sharing this series write up with you, as it was my learning too. I just hope even one of you benefited from these little nuggets, I have paid back in love what I learned in pain. 
I have said this many a times before but need to to reiterate again. Market was there before you came in and probably it is going to be there after you long gone. Do not think of every trade as your next big trade which changes your fortunes. When you think that way, you are not practical. Trust me, When I say this, because I am saying from my experience. When your big trade happens and it will happen, it will happen while following strict rules and stop-loss…You won’t even realize how your trade turned out to be big winner. It will catch you surprise and you will be pleasantly rewarded. But until that moment arrives and it will come, Do follow rules and preserve you capital. Because if you are not there trading tomorrow then who will receive the gift?
My friend… to stay in the game, you have to preserve capital and only if you preserve capital…you are giving yourself chance of winning big!..
Adios Amigos,
I wish you best…
Suresh…
Have a great weekend and week ahead………
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In case you missed my earlier post …
…kidding…do not really know…