Reasons for close trades too early before TP

[willforex]

Hello Traders,

I seriously have this issue even though I have a trade trading plan and trading rules. I always try to adhere to the trading system. But I am struggling with this profit taking part. I think this is a psychological issue.
So I really like to collect your ideas on this part to find a better solutions

 

[RahmanSL]

With the exception of positions for carry trades, I preset TP for all my trades.
If I do not have time to monitor my trades, sometimes the TP are triggered when I checked back.
Other times, when I check back and TP have not been triggered but positions are in profits, I will immediately close out all positions that are in profits. For me, a profit in hand is worth the 'millions' which might or might not come.
I will then research back on my target currency pair before making more trades.....or look for other worthwhile pair to trade.

 

[Whitesnake]

This usually happens when we have the fear of losing the profits made hence we realize the profits at the early stage. But if we have made really good analysis and then if its a potential trade better to wait for the good reward.

 

[Pharaoh]

Setting SL to BE (or a few pips better than BE) may help. Then you only have profits at risk instead of worrying about a good trade turning into a loser. Trailing your stop may also help.

Another thing to consider. Look carefully at trades that have achieved healthy profit and then reversed before the TP. Did you stretch your TP too far? If so, consider narrowing it a bit. Or, was there some sign that the market was about to reverse and take away all those nice profits? If so, work out a very specific set of rules to determine if you close a trade early or not.