One of my mantras is to “set it and forget it” after making a trade. Once a trade is made, I set my stop and target, then forget about the trade until one of the price objectives is hit. At least I usually do . . .
My recent GS trade is a good example of a trading “leak” that many traders have, the error of impatience. GS was not a losing trade, but I could have done better. I originally entered at the bottom of the current trading range as an “oversold” setup as the stock neared support and was oversold. My initial target was hit, I took a partial profit, then moved my stop up just under the current support range. If I had stuck to it, the second half of my trade would see a profit right now.
Instead, I got tired of waiting for something to happen and exited on Friday before my stop was hit. Thus, I missed out on today’s 2 percent gain.
We all must remember that we set out stops and targets for a reason, and little good comes from “micro-managing” trades.