Open trading account 
One of the most common traps that we fall into as traders is that of holding out for more Pips than we should on a trade. This can provide us with additional Pips at times but in most cases, the market will reverse sharply to quickly erase our trading gains in the blink of an eye.
This is why it is important to incorporate a rule as to how long you are going to hold on to a trade before closing it, regardless of whether it has hit your original target.
The GBP CAD trade provided a great example of the discipline needed to avoid these types of losses. At the end of my Holding Period for this type of trade, the market had not yet reached the 160 Pip target. Even though it had reached close to the Support area where that target was and it can be tempting to hold on for a little bit longer, the Sharp Reversal that took place right after my exit proved that obeying this rule was the right decision..
As long as we consistently obey this rule when it comes to trading, we will be better able to maximize on our profitability while avoiding these traps that our ego and emotions can create.
Duane
This is why it is important to incorporate a rule as to how long you are going to hold on to a trade before closing it, regardless of whether it has hit your original target.
The GBP CAD trade provided a great example of the discipline needed to avoid these types of losses. At the end of my Holding Period for this type of trade, the market had not yet reached the 160 Pip target. Even though it had reached close to the Support area where that target was and it can be tempting to hold on for a little bit longer, the Sharp Reversal that took place right after my exit proved that obeying this rule was the right decision..
As long as we consistently obey this rule when it comes to trading, we will be better able to maximize on our profitability while avoiding these traps that our ego and emotions can create.
Duane
