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My Top 20 Online Trading Currency Pitfalls (EMBARRASSING!)

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10: Running Losers, Cutting Winners

By far the most common trading mistake is holding on to losing positions for too long and taking profit on winning trades too soon.

By cutting winners too early, you may not make as much — but then again, you literally can’t go broke taking profit.

That said, you will deplete your trading capital if you let losses run too long.

The key to limiting losses is to follow a risk-aware trading plan that always has a stop-loss order and to stick to it.

No one is right all the time, so the sooner you’re able to accept small losses as part of everyday trading, the sooner you’ll be able to refocus on spotting and trading winning strategies.

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