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CUTTING WINNERS, HOLDING LOSERS

Book profit early and keep loss for a long time.

Published by The Retail Trader · JUL 31, 2026 · Trading Psychology

Cutting Winners, Holding Losers — Booking profits early and holding losses for a long time. This is exactly the opposite of what works for us.

WHERE THIS FITS IN

This term comes under Trading Psychology, in the section "Mistakes of BEHAVIOUR". These are actions — these are easy to save because they appear clearly in the journal:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Revenge Trading
• Overtrading
• Averaging Down
• Moving the Stop Loss
• Chasing
• Tip Trading / Herd Mentality
• Position Size Creep
• System Hopping

To read the entire group and all its examples in one place, see the journal "TRADING PSYCHOLOGY: Words from the Mind" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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