Such losses not only reduce the capital, but also reduce your future opportunities to earn more profits. Thus, closing the position on foot you will not only safeguard against further depreciation of the capital, but also get the opportunity to earn money in other deals. In other words, closure on the foot increases the chances of successful trading. Reluctance to close a profitable position sometimes greed takes possession of a trader so that he does not notice how it becomes a profit loss. Protection of this is clear adherence to the rules close profitable positions.
These rules can be as skolzaschy and target stop. Remember, human nature works against good trade practices. We love to make a profit and hate suffer losses. As a result, traders often tend to close their strongest positions too early (loss of profit) and too long to maintain their weakest position (as long as I keep them, no loss ") instead of what would allow their strongest positions to work, and their weak position to close with small losses. Lack of money management Money management or control of the size of the opening position – it is the main factor in successful trading. Error trade lots of large size can cause a serious drawdown of capital. Many traders do not fully understand the importance of respecting the size of the opening position. But with the size of positions can be very "seedy" to make a profitable trading system, and vice versa, super profitable – unprofitable.