1. They have no clear profit goals in mind.

There's nothing wrong with setting a profit target while your trading is still ongoing. It's much easier to keep trading with CLEAR profit targets than without a goal. This is like swimming out into the ocean is much more difficult than swimming ashore, since shore is a destination!

2. They have a low-risk tolerance.

A trader's lack of risk aversion also contributes to early profit-taking.

Some traders always want to feel sure and take profit with a profit of $ 100 rather than risking a portion of the profit, say $ 50 for the rest of the trade. When the trend is right, boldly bet 1 part and only pocket part, because the probability of the trend continuing will always be higher than the probability of the reversal!

3. They are not confident with their trading ideas or trading skills.

Keeping your trades until the price hits your profit target not only requires a lot of patience but also requires considerable confidence.

There will be a lot of uncertainty along the way of "hold", which means that it will become more difficult to keep your faith in your trading idea.

When you see your potential returns increase, the more you are more tempted to lock those gains than to risk you losing them all.

So how can you achieve this level of confidence?

The answer is: Please believe in yourself.

That's right, it's as simple as that. Unfortunately, it's not as easy as it sounds. You must be able to believe in yourself, as much as you can to stick with your plans and stick to them until your profit goals are reached.

Dr. Steenbarger says that building confidence in yourself can be done in two ways:

1. Imbued with a confident mindset:

This is when you prepare yourself for a price retreat and your paper gains lost.

For example, when you are entering a trade and it is profitable, identify possible retracement areas or support points and set stops accordingly.

There will be times when you will be stopped by false breakouts and then the price returns. But don't let these beat you. Instead, remind yourself that you've finished your work and there will be other opportunities to take advantage of next time.

2. Take profit in small pieces based on price action changes:

This means you should do a little bit of work at a certain time and build on those efforts to start making bigger changes.

For example, you can take some of your profits at a time and leave the rest until your profit or stop loss target. This way, you can both get a profit while at the same time gain confidence in seeing your trade come to your take profit point.

The market doesn't turn out to be what you want every day. But when it does, do you want to make the most of it? Please improve your profit-taking to be more successful!