𝑯𝒆𝒊𝒔_𝑪𝒓𝒖̈𝒛💜👻

If you take profits early because “it beats losing,” your anxiety may go away, but your success moves further away. Today I will explain the mechanism behind it. Many people take profits as soon as a trade moves even slightly into profit because they are afraid of losing it, but this behavior pulls you away from success. A strategy with an edge shows its edge only when you follow its rules properly. By entering according to your rules, exiting according to your rules, and repeating this, the win rate and risk-reward of that strategy are drawn out through the law of large numbers. If you take profits earlier than your rules say, the reward side of your risk-reward is cut short, and your risk-reward turns against you. Looking at the profit in front of you and thinking, “I don’t want to lose this,” is extremely short-term thinking. The more weight you put on the result of a single trade in front of you, the more consistency disappears from your actions. That is because short-term results are heavily affected by randomness. Your actions fall in sync with randomness, and you start putting “what I want right now” ahead of following the rules of the strategy with an edge you prepared in advance. Of course, you then cannot act consistently, and probability cannot work. You may think, “But taking profits early has actually let me end trades with a profit instead of a loss.” Looking at single results, that does happen. But if you have prepared a strategy with an edge in advance, all you can do is trust its statistical edge and act on it. Even if that trade ends in a loss, a strategy with an edge is one built so that a profit remains in the end when you keep repeating its rules. You need to think much longer term. And the biggest reason this behavior is bad is that once you do it, you will always close the next trade with a small profit too. The next time a trade moves a little into profit, you think, “It beats losing it,” and end the trade with a small profit. The profit on every trade gets capped small by you, and your strategy turns into one with a very poor risk-reward. If seeing the amount makes you think, “I don’t want to lose this,” hide your P&L on the chart. You do not need to watch the chart all the time. If your strategy sets a take profit, close the chart and do something else until either your stop loss or your take profit is hit. If you use a trailing stop or something similar and need to check the chart from time to time, work out how long it takes for a few candles to form, and stay away from the chart until then. These are just examples, but think about ways that help you stay consistent. Unless you can put following your rules ahead of the result in front of you, trading will not work for you. Following your rules is the only path to profit.