Let your profits run!

One of the biigest mistakes made by traders is to take profits early. Visualise this scenario...3 months of average losses and winners...2% loss, 3% gain, 2% loss, 2% loss etc...so basically nothing at the end of 3 months or maybe 10% down....a trade comes and you are 10% in-the money. 9 out of 10 people will book the profits before their system tells them to. And that trade is the trade of the year that gives them the 30% move they have been dreaming of.

They say you never get poor taking profits. True. But you never get rich too.

Follow your system. Cut your losses and let your profits run. In most cases you will exit lower than the peak...but those 2-3 big trades in a year will make your day and make trading so worthwhile and profitable.

Nifty trading - 2009 performance so far

Results of Nifty trading in 2009 using short term high probability momentum trading based on Technical Analysis:

January 2009 - 14.8%
February 2009 - 0.6%
March 2009 - 4.8%
April 2009 - 22.1%
May 2009 - 12.6%

2009 YTD - 54.9%