Unable to hold onto profitable trades, feeling fearful after giving back a bit of profit, how to resolve this?
The characteristic of a profitable trade is: small losses and large gains.
Because small losses occur frequently, while large losses are relatively rare, you need to achieve large gains to cover the costs of small losses and still make a profit.
Taking small profits and exiting will inevitably lead to long-term losses.
Therefore, for every trade, set a principle for yourself: once you open a position, it should either be a small loss or a large gain—absolutely no other states (small profit or large loss) are allowed.
If you take a small profit and then pull back, it indicates that this trade was not meant to be profitable; stop-loss at a small loss.
Tell yourself that opening a position comes with a cost.
The cost of each trade is your stop-loss cost, which is something you have to pay from the very beginning.
By deducting this part of the loss from your mental account first, you can greatly reduce your fear.
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