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FX

The Exit Trap: How Poor Trade Management Quietly Destroys Your Account

by Gav Leave a Comment

The Silent Killer: How Inconsistent Trade Management Bleeds Your Account Dry
Real talk from the trenches

Most traders obsess over entries.
New setup? Screenshot it.
Clean breakout? Love it.
Indicator combo? Let’s backtest it for six months.

Cool. But here’s the kicker…

It’s not your entries that are killing your account.
It’s your exits. The wildly inconsistent ones.


The Setup Was Good… But Then What?

Ever nailed a perfect entry, felt like a genius…
Then watched the trade crumble because you second-guessed your exit?

Yeah. Me too.

That’s the silent killer.
Inconsistent trade management.

You’re letting fear, greed, and guesswork steer the ship. And slowly, trade by trade, pip by pip—you bleed your account dry.

Let’s break it down.


How Inconsistent Management Wrecks You

Here’s what happens when your exit game is all over the place:

  1. You cut winners too early.
    Got scared. Took profit at +10. Price ran for +50. Regret kicks in.
  2. You let losers run.
    “Maybe it’ll bounce.” It doesn’t. Now you’re down 3R.
  3. You flip-flop mid-trade.
    Trailing stop? Fixed TP? Manual close? You improvise. Every. Single. Time.
  4. You treat every trade like a new religion.
    This one’s special, right? So you ditch your plan. Again.

Bottom line?

You never give your edge a chance to work.


My Exit Game Used to Be a Joke

I’d enter like a sniper…
Then exit like a caffeinated squirrel.

No structure. No logic. Just vibes.

One day I’d trail stop by structure. Next day I’d close at VWAP. Then I’d just… panic-exit because “the candle looks weird.” Like a chef who perfectly sears a steak, then throws it in the bin because the plate feels off.

My equity curve looked like a heart monitor.


Here’s What Changed It All

I stopped chasing the “perfect” system.
Instead, I got brutally consistent with how I manage trades.

Here’s the playbook I use now:


5 Steps to Fix Your Exit Game (Starting Today)

1. Decide your exit plan before you enter.

  • Fixed R multiple? Trailing stop? Structure-based TP?
  • Pick one. Stick to it for at least 20 trades.

2. Accept that you’ll leave money on the table.

  • That’s the price of consistency.
  • Would you rather catch the occasional big win, or actually grow your account?

3. Stop tweaking mid-trade.

  • Unless news nukes the chart, let it run.
  • Don’t adjust stops because “it feels like it’s reversing.” Feelings aren’t strategy.

4. Use journaling to find your sweet spot.

  • After 20–30 trades, review:
    • Where did you exit?
    • What would’ve worked better?
  • Tweak then. Not mid-session.

5. Automate it if you must.

  • Set TP and SL. Walk away.
  • You’re not a machine. Let your platform be one.

Trading Should Be Boring

The best trades? They’re like brushing your teeth. Nothing flashy. Just part of the routine. best trades I’ve ever taken?
They were boring.

Planned the exit. Let it play out. Took the result. Moved on.

No dopamine rush. No drama. Just execution.

That’s the game.
You’re not here to be entertained. You’re here to make progress.


Wrap Up: Be Ruthless with Exit Discipline

Want to stop sabotaging good setups?

Master your exits.
Pick a method. Stick to it. Track it. Refine it. Rinse and repeat.

Your job isn’t to catch the top. Or the bottom.
Your job is simple: stay alive. Stay consistent. Let your edge work.

That’s how you stop the bleeding.

Now go review your last 10 exits.
Were they consistent?

If not—fix it before it buries your account.


Your Turn:
What’s your current exit strategy? Or are you still figuring it out as you go?

Drop a comment. Let’s talk real trade management.

Filed Under: Back to Basic, blogs, Learn Trading Tagged With: FX

My dinner conversation with a new trader

by Gav 30 Comments

Dinner conversation with a new trader
A Dinner conversation with a new trader

I do not normally discuss or talk about my trading outside cyberspace. The longer I traded, the more I feel uncomfortable talking about it. Maybe, I am just being lazy to explain ‘what is currency trading…bla bla bla’ or maybe I am just a person who is really bad in explaining thing clearly 🙂

Conversation with a new trader

I was having a great dinner at my friend’s place. I still miss the delicious roasted turkey, baked rice, sweet potatoes, etc 🙂 One young gentleman from India mentioned that he is interested in learning Forex trading and consider taking some expensive trading courses. He saw his friends playing with Fibonacci lines, indicators, etc (wow, he knows these terms..) which is accurate 80% of the time. I kept quiet. I really did not want to get into the discussion. However, one of my friends who knows I am trading actively pointed him to me. Oh well…

In the hindsight, probably I was not too friendly to him. My ‘advice’ to him was:

“Yes, I am trading currency actively. However, I do not teach. The risk of this business is too high, so I do not encourage young people to go into that. I am in this business long enough to tell you that. 90% of retail traders failed. I am a little lucky to manage to earn some small money. But, seriously, I really don’t encourage”

Looking at his face…I know my words are not encouraging. ‘Go and try demo accounts, make sure you are able to make some money there, then only start thinking about forex trading’

picture-059

What kind of advice is this? I had just given a cold blanket to a young trader wannabe. My bad.

I am not sure if I did the right thing. He might probably go for some expensive trading courses and start with his friend’s 80% accuracy system. That’s not my problem. He might even think I am being arrogant by not sharing anything with him. At least, I did not commit a sin that by telling him, ‘forex is a wonderful 24-hour market, where you can make money anytime, anywhere you want’.

Well…I think I did the right thing after all.

The lesson here? Don’t ask Gav out for dinner and talk about trading.

This blog post was first written back in June 8, 2009. I review it and repost it again as I thought it might be useful to new traders.

If you really keen to learn trading, check out my posts in the Back to Basics of Trading series.

Filed Under: blogs, Learn Trading Tagged With: FX, Trading Lessons

$GBPJPY potential reaction zone 20 Feb 2013

by Gav Leave a Comment

So, big sell off of GBP. There are loads of retracement levels for GBP crosses. I am taking GBPJPY to show potential reaction zone.

M30 – Around 143.90 zone. A retest of previous support turned resistance, with confluence of supply line, and the base of sell off. This zone should provide some reactions.

M30
M30

M5- Detailed look into price action. Expect compression or pattern such as triple tap into reaction zone.

M5
M5

Filed Under: Trading Journal Tagged With: FX, GBPJPY, technical setup, Trading Journal

$AUDUSD 20 September 2012

by Gav

Here is the 4-hour chart of AUDUSD. Just like last week, everybody was watching/talking about the daily pin bar, now we are presented with a obvious Head and Shoulder formation� in H4 chart.� I like the fact that 1.04 support is now broken, I am looking at further downside.

Here is the …. CHART.

AUDUSD H4 Pontential Head and shoulder formation

Filed Under: Trading Journal Tagged With: 1touchtoomany, AUDUSD, FX, head and shoulder, Key Levels, Trading Journal

$NZDJPY 20 September 2012

by Gav Leave a Comment

Here is the $NZDJPY daily chart after NY session close yesterday. Very nice reaction at 65.50 ish zone. The major roadblock is seen at 64.30 ish zone now. It is a strong support zone formed by previous highs.

Here is the…..CHART!

$NZDJPY Daily

Filed Under: Trading Journal Tagged With: 1touchtoomany, FX, Key Levels, NZDJPY, Trading Journal

$NZDJPY 13 September 2012

by Gav Leave a Comment

NZDJPY looks interesting to me. A potential short. Just be aware high impact events (FOMC statement) later today.

$NZDJPY H4

Filed Under: Support Resistance, Trading Journal Tagged With: 1touchtoomany, FX, Key Levels, NZDJPY, Trading Journal

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