Rules....Who Needs Rules....

I DO!
Well I entered a wonderful trade, and I exited too soon. I got concerned regarding some of the signals that I used to enter the trade, and chose to exit early.

One of my main rules is that regardless of the outcome, you stay in a trade till it either pays you out or the broker takes you out at your stop. That seems easy enough, however, sometimes emotion gets the better of me.

I am telling you this because I'm not doing it again. I took a loss on the trade to minimize what I thought would be a much larger loss on the UsdJpy. But as you can imagine, the trade never hit my stop, and as a matter of the fact, I would be up roughly 120 pips right now. Oh, and the target keeps getting farther away.

Great lesson: If you can't stand to take a loss at the stop you set up when you entered the trade, you are risking too much on the trade.....