All traders, at least when they first entered the world of trading, must have felt volatile emotions during floating losses. Whether it's upset, angry, frustrated, afraid, or panicked. But who says only floating loss makes emotions? Floating profit is no less powerful in stirring up our emotions. The emotions can be in the form of greed, indecision, nervousness, worry, fear (if the price reverses and becomes a loss). To escape from the grip of emotions which of course cause discomfort, traders usually look for an easy, cut profit. And it's usually too early, because often the price continues to fall according to the direction of the trade.
This is dangerous, no less dangerous than emotions and actions when floating loss. It's even more dangerous, because the cut profit results in profit, so it doesn't feel like a mistake. We can learn a lot from loss, but we rarely learn from profit.
Why is it dangerous? Because we lose a lot of potential profits that we should be able to get. And because the result is still profit, we rarely realize and feel it. Cut profit becomes an addiction, a way to get comfort or escape from emotions when floating profit, instantly.
Then how can we manage emotions when floating profit? I mean, emotions do arise and are felt, but not to the point of influencing our trading decisions and changing our trading plans. So even though we are emotional, we still close the position at the profit price point according to the trading plan, don't rush to close it early, aka ABC.
Many traders will definitely suggest to install the TP, and wait until the price hits the TP. That's good advice, but (sorry) not much use. If you can say, nonsense. In theory it is true, but in practice it is difficult to implement. Put TP clearly must. But will it make novice traders who are angry because floating profit can hold back until the price hits the TP? I am not sure. Beginner traders, especially those who started their careers with scalping, want to install any TP, ABC will surely fall, as long as the blue closes. TP will only be a display alias formality.
Then how is it practical? Ways that can be applied by novice traders? Yes, like how to learn everything else. Done gradually, step by step, practiced and repeated until it becomes a habit. For example, if we use ABC and cut profit 3-5 pips, we increase it slightly to 7-10 pips (it's impossible from a 3 pip profit cut habit to immediately hold up to 50 pips of TP. Just try it). So just relax. Patient, relaxed, what matters can become a habit and ingrained. We trade not for a month or two, but for a long time right. After a 10 pip profit cut is practiced, repeated until it feels comfortable and becomes a habit, increase it again to 15 pips. Keep repeating it, get used to it. Then increase it to 20, 25, 30 and so on. Enjoy the process, feel the results.
What do you think about your experience? Maybe something extra?
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