Ah, the thrill of watching your trading portfolio swell like a balloon at a birthday party! But wait—don’t let the excitement lead you to abandon your game plan. When the market’s surging, it’s all too tempting to throw caution to the wind, right? Yet, as any seasoned trader knows, a handful of bad decisions can deflate your hard-earned profits faster than you can say “market volatility.” So, how do we keep our heads while winning big? In this article, I’ll share six solid strategies aimed at not just keeping your gains, but turning them into long-term success. After all, every win should feel like a victory lap, not a slip on a banana peel! LEARN MORE
It’s easy to abandon your trading plan in favor of maximizing your wins when the market is going your way and doing it in hyperspeed.
But unless you have rock-solid discipline, your wins will be spotty at best. You might even lose your profits to bad trading decisions!
Here are points to remember to help you become consistently profitable:
1. Scaling in and out is a risk management tool
Scaling into winning positions helps prevent FOMO and helps maximize profits while your trade idea is still valid.
Just remember that the more you add to a position, the bigger the price moves will impact your P/L and the likelier you are to make emotional trading decisions.
If your risk management style leans towards protecting paper profits, then you should consider scaling out or taking partial profits.
Hey, a win is a win, right? $200 in realized profits can still feed your cats better than $1,000 worth of paper profits.
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