Stay with winning trade
“……The best way I know to learn discipline and patience is to think through a trade thoroughly before putting it on. You need to develop a plan of your strategies for various contingencies. That way, you won’t get swayed by every news item that hits the market and causes prices to move up or down. Also, it helps greatly to have a long-term objective that you have derived by really doing your homework. You combine that long-term objective with a protective stop that you move as the position goes your way. Alternatively, you could use a trend-following system to signal when you should get out of the trade. By having thought out your objective and having a strategy for getting out in case the market trend changes, you greatly increase the potential for staying in your winning positions.”
I read this quote from Market Wizards: Interviews With Top Trader by Jack D. Schwager which is a excellent writing and a must read for all traders. This is part of interview with Gary Bielfeld. This quote is to remind myself how important it is to have a plan before entering market. Staying with winners and getting rid of losers sounds easy but difficult to implement in real trading life.
