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The most dangerous habits in trading, let me explain.
The most dangerous habit in trading:
Closing winners too quickly… and holding onto losers
1) Fear steals your profits, and hope sinks you into losses
As soon as you see a small profit, fear pushes you to say "Let me secure it."
And as soon as the trade reverses, hope deceives you: "It will come back, and I’ll get out."
The result? You pick the fruit before it ripens… and water the loss until it grows bigger.
2) A high win rate doesn’t mean a profitable account
You might win 7 trades out of 10…
But if your average profit is $100 and your average loss is $300, your account is bleeding while you think you’re "doing well."
Numbers don’t lie — review your risk-reward ratio, not just the win percentage.
3) Collecting crumbs… then paying the full bill
Small, repeated profits + one big loss = an entire week wiped out by one trade.
This isn’t bad luck — it’s a deadly pattern that repeats among most traders.
4) The 5-second test: Are you caught in this habit?
Ask yourself:
– Did you close your last winning trade out of fear?
– Did you keep your last losing trade open out of hope?
If the answer is yes… you’re trading emotionally, not with a plan.
5) The golden rule: Exit is written before entry
Before you press Buy or Sell, you must have written:
– Where’s the stop?
– Where’s the target?
– When will you move the stop?
If you haven’t written it… you’re likely to exit based on emotion.