We all have reason why we enter and exit trades. But what if the market has changed and the reasons are no longer valid as to why we entered a trade. The best line of thinking we have found is: once the reasons have changed as to why you got into a trade it is best to just close the trade. Just Get Out.
If you entered a trade because there was a strong trend and it no longer seems strong, exit the trade. If you got into a trade because the indicator gave you a signal and it fails to do what is should do, don’t wait to get stopped out, just get out. There is the stop to prevent massive losses but if you can save 5, 10, or even 15 to 20 pips then just get out. As soon as you know you are wrong, just close the trade. A pip saved is a pip earned.
If the indicator doesn’t continue as hoped for, hoping even harder will not make the market turn for you. It is best to accept the fact that the trade is not going to work out and your best bet is to just get out. It doesn’t matter if you are positive or negative on the trade once the reason you made the trade is no longer there, start thinking about closing the trade.
There are always more trades. Each trade is one of many trades so treat it as only one trade. Do not get emotionally attached to any one-trade look at it as part of your mechanical way of trading. When one trade ends you know the next trade will be right around the bend.