Best Forex Trading Mentors

When real money is on the line, new Forex traders find it very hard to manage the trader properly.  Before the trade, they follow the trading system rules for entry and are calm and rational.  But once the trade is placed, the emotions of having real money at risk take over and they become excitable and irrational.  This results in managing the trade based on emotions of fear and greed, instead of the rules of the trading system itself.

Imagine getting into a trade and going into profit. You are not at your take profit level, but you don’t want to lose the money you already see, so you exit the trade early.  Or, let’s say the opposite happens and the trade goes against you so you exit the trade early before the stop is hit. In a lot of cases, price continues to your original price target, or turns around and goes profitable, which means you lost money by exiting early.  In either case, you were not following your trading system, which is not a good thing.  I’m going to go over 3 ways you can keep from letting emotion take over which makes you exit trades early.

In the first scenario, the Forex trading system you are using sets a stop loss and has one take profit level.  So, you place the trade and set the stop loss and profit target in your trading station.  The best thing to do now is accept the risk you have in the trade and let the trade play out one way or the other.  Walk away from the computer if you must.  At this point, viewing the chart is valueless and will only lead to a roller-coaster ride of emotions.  At this point you should either walk away or go to other charts looking for other setups until the trade either hits your stop loss, or hits your price target.

In the second scenario, you use a system where you place the initial stop loss, but the target is open and only triggered by a signal in the opposite direction. In this case, you just can’t walk away from the computer because you need to watch the chart to know when to exit.  Therefore, I would click on the Terminal Window to make it vanish so I can only see what is happening on the chart.  Seeing the number of pips or profit and loss of the trade is only going to be distracting and tempt you to close the trade early.  By getting rid of the Terminal Window, you can base your exit on only what you see on the chart like the system calls for.

In the third case, you are using a Forex trading system where you set your initial stop loss, but you plan on moving your top and taking partial profits at predetermined levels. You have multiple things you need to manage with this type of trade.  To make this easy and keep emotions out, you can use a Trade Management EA which does everything for you on autopilot.  At this point, just let the Trade Management EA take care of the trade management and walk away from the chart.

To get more tips and methods for profitable Forex trading, sign up for Forex Insider Pips for free.  And if you don’t have a Trade Management EA, I’ll give you mine so you can start out managing your trades on autopilot.  I’m sure you’ll see, eliminating the premature exits of trades can keep you on your trade plan and make you a more profitable trader.