Why should I let a position reach its Stop-Loss (SL) or Take-Profit (TP) instead of closing it early?

• Risk (how much you are willing to lose) and

• Reward (how much you aim to gain).

Closing trades manually before they interact with SL/TP undermines this plan and can lead to:

1. Uncontrolled Risk – like gambling

   • When you ignore your predefined exit points, each decision becomes a guess.

   • This turns trading into impulse betting, where results depend on luck, not on a calculated strategy.

2. Distorted Risk/Reward Ratios

   • Exiting too early on profits while letting losses run creates a negative expectancy over time, even if you win many trades.

3. Emotional Trading

   • Fear and greed take over, often causing overtrading and revenge trading.

   • Consistently breaking your own rules erodes discipline and capital.

Best practice:

• Place SL and TP before opening a trade.

• Allow the market to reach one of those levels.

• Adjust only if your original trade analysis changes (e.g., fundamental news invalidates your setup), and document the reason.

Waiting for SL or TP is not about being passive; it is about trading a plan, not emotions. If over 50% of your trades show no interaction with stop losses or take profits, your account may be flagged for gambling activity.