Here are a few tips on when it’s best to withdraw from the trade
You have just closed down your position and you see another setup? Do you want to increase your position to make up for the last loss? If you find yourself in this situation, take your hand from the mouse, because your decision will be based on emotions. Attempting to recover losses by increasing your position does not work and it is more likely that you end up with a much larger capital slump.
Every transaction should be in the trading plan. If the transaction was not planned, it is better to skip it. Having a trading plan should be mandatory for every serious trader.
Everybody was in a situation when we needed only one, small, profitable transaction to finish the week “in green”. But then our forced transaction produced even more loss. Do not evaluate your progress based on weekly or monthly results. The market situation is changing and you’ll be able to generate equally good results in all conditions.
Professional trading requires your full attention. If you’re still thinking of your quarrel with a colleague or spouse – your trading will suffer. You can always wait for another transaction, but you will not get back the money you could have saved if you had avoided unnecessary errors.