When the market keeps going up and you're out: the emotional roller coaster of trading
Ah, that moment. You know, when you decide to exit a trade because you hit your target, or because you thought enough was enough… and suddenly, the price keeps going up. And up. And up. You see it on the chart, and immediately that little voice in your head starts:
“Why did I leave so early?”
“Maybe I should go back in, I'm sure it will go up more…”
“I'm missing a huge opportunity.”
That cycle of fear, indecision, and regret isn't just frustrating, it can lead you to make impulsive decisions. So, let's talk about what's really going on: It's not the market, it's you.
The market won't stop for you (or for you)
First, something all traders must accept: the market has no emotions. It doesn't know you got out. It doesn't know you're watching it go up. And it definitely won't stop you from getting back in.
The problem isn’t that the market keeps going up; the problem is that, as humans, we hate the feeling of “missing out.” This phenomenon has a name: FOMO (Fear of Missing Out).
Why do we want to come back in?
Re-entering a trade you've already closed isn't always a logical decision; it's often an emotional one. Here's what really happens:
1. Your mind seeks validation: You wanted to feel like you made the right decision, but when the price keeps going up, you feel “wrong.”
2. Greed takes over: You've already won, but now you wonder how much more you could have won.
3. Fear of being left out: Seeing others (or the market) “earning more” makes you feel like you’re missing out on something important.
How to manage those emotions?
This is where the real work of trading comes into play: controlling your mind. Because the market won't hurt you, but your poorly managed emotions will.
1. Remember why you came and went
Every trade should have a plan: entry, exit, targets and risk levels. If your plan said you would exit at a certain level, then your work is already done.
If the price keeps going up, don't take it as a mistake.
If you feel the urge to re-enter, ask yourself, “Is this in my plan or is it just emotion?”
2. You can't capture all the movement
One of the hardest lessons in trading is accepting that you can't catch the top or the bottom. It's not how much you made or lost on that trade that matters; it's long-term consistency that matters.
3. Use objective tools
Sometimes, when our emotions are out of control, we need something to bring us back to logic. Indicators like RSI, volume or Fibonacci levels can help you analyze whether it is really worth re-entering, or whether the move is already extended.
4. Take a moment
When you feel that urge to get back in, close the charts for a few minutes. Pause and breathe. The market isn't going anywhere, but your mental clarity can if you act impulsively.
The internal battle: you against you
Trading is not just technical analysis; it is a constant confrontation with yourself. Watching the market go up after you exit can feel like an ego blow, but your goal is not to beat the market, it is to be consistent.
More often than not, when we jump back in on emotion, we end up stuck in a pullback or reversal. Has it happened to you? Because it has to me. I learned the hard way that regret is stronger when you make decisions outside of your plan.
Joke to relax a little:
They say traders have a complicated relationship with the market. When you're in, you want out; and when you're out, you want back in. It's like a bad love affair. 😂
Conclusion: Learn to let go
Watching the market continue to rise after you've gotten out can be frustrating, but here's the truth: If you've taken profits, you've already won. The market isn't a sprint; it's a marathon. Accepting that you can't catch every move is key to having a calm mind and clear decisions.
Remember, trading is not about winning more on one trade; it's about winning consistently on many trades. So next time you feel that urge to jump back in, ask yourself: is this part of my plan or is it just my emotion talking?
Because in the end, the market will always be there, but your peace of mind and focus are what really matters.
