Quote:
Originally Posted by rafiki
Being up might be harder than being down.
I have always found this to be true. I have no problems puking when a position goes against me but holding winners is much more of a test. It is so tempting to take that initial pop and rationalize it away saying you can't go broke taking profits. The trade has to be okay before it can be good, good before it can be great and great before it can be truly stupendous. Taking off the okay and good trades too soon will kill you in the long run.
A lot depends as always on time frame, expectations and many other factors. I use a rules based approach to exit that helps me stay in. My biggest leak was always getting out before the trade had truly run its course. The downside is the psychological damage of watching those winners retreat a bit. But for me the most pain came when I got out and it kept going. Now I never regret watching a winner pull back before my rules tell to get out but if I get out early I know it is always a mistake even if it works out. It is especially tough when you get a very fast and big initial move in your favor.