Trade management problems & solutions for day traders

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    1. Too selective on your trades, meaning you miss opportunities.
      Trade a small size to reduce your risk & increase your comfort zone so that you are prepared to execute more trades.
       
    2. Stops are too tight, so too many trades end in losses. 
    3. Trade size is too large, so losses are too big. This makes you hesitate with future trades.
      Trading too large usually means that your stop is too tight because you are trying to balance limiting losses with being too greedy.
      By which I mean your stop is too close to your entry point because you don’t want to lose a lot of money but you do want to make a lot of money.
      So you use a very tight stop in the hope that you can pick the exact bottom of the market.

Solution: Decrease your size, giving yourself some room for the trade to work, which is likely to increase the percentage of trades that work.

4. FOMO – Chasing trades – Jumping into a trade before the support or resistance entry level is hit.
Because you are lacking patience! You must be prepared to miss a trade by a couple of pips.
Chasing trades ensures your stop loss order will be too wide or is in the wrong place.

For example if you have bought too far above the support level, your stop is going to be too close to that support level,
so you risk being taken out of the position at the price point at which you should be entering.

Solution: It will happen. Accept that you will miss trades by a small margin. Move on to the next trading opportunity.

5. Exiting winning trades too soon because you fear losing the accumulated profits from the open trade.

Solution: Use trailing stops to protect profit & take partial profits as your anxiety increases as your profits increase.

    1. Varying trade size which risks losing more on one trade then you will make on another.

Solution: Risk the same amount on every trade.

    1. Getting out of trades too early – making less profit than you were prepared to risk losing.

Solution: Set sensible targets before you enter the trade & do not screen watch. Let the trade play out while you do something else.

    1. Not taking profit and running the trade too long.

Solution: Set sensible targets before you enter the trade & make sure you stick to them. Profit taking allows you to move on to the next opportunity.

 Successful traders keep collecting small amounts of profit, by executing low risk trade and overtime they build large profits.
They do not get rich on a few trades. They do not get rich in weeks or months. It takes years!

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