Happy Friday, traders…
Ben here.
I want to talk about something every trader faces, but few ever master: knowing when to step back…
It’s not glamorous, but learning how to walk away at the right time could be the most profitable move you’ll ever make.
Have you ever found yourself stuck in a vicious trading spiral?
Maybe you’re riding high after a win and start feeling invincible. Or, on the flip side, you’re reeling from a loss and convince yourself that one more trade will turn it all around.
In both cases, it’s easy to forget that the market doesn’t care about your emotions. And more often than not, acting on those feelings ends up costing you.
But with the right mindset, you can train yourself to step away from the screen before emotions take over.
And when you do, you’ll not only protect your capital, but you’ll also safeguard your confidence — two things every trader needs to thrive.
Today, I’ll show you why walking away matters, how to do it effectively, and how to spot the temptations that can derail even the most disciplined traders…
Knowing When to Walk Away
Trading discipline doesn’t just mean sticking to your strategy during the trade. It also means knowing when to step back.
Sometimes, the smartest move is not making a move at all.
There are a few key moments when you should seriously consider walking away:
- When Emotions Take Over: If you’re angry, frustrated, or desperate, you’re not thinking clearly. These emotions cloud your judgment and can push you into taking setups that don’t align with your trading plan.
- After a Big Win or Loss: It’s easy to get overconfident after a great trade or reckless after a big loss. Either way, you’re likely to deviate from your strategy if you trade too soon afterward.
- When the Setup Isn’t Clear: If you’re squinting at your chart, trying to “force” a trade where nothing aligns, that’s a clear sign you should step away.
This is where self-awareness becomes a trader’s superpower. You’ve got to know your limits — and respect them.
How to Walk Away
There’s a difference between taking a break with intention and quitting out of frustration…
Here’s how to make walking away work for you:
- Set Clear Rules: Decide ahead of time what will cause you to stop trading for the day. Hitting a daily loss limit? Reaching a profit target? Feeling emotionally drained? Make these rules non-negotiable.
- Have a Reset Ritual: When you stop trading, do something that shifts your focus. Go for a walk, grab a coffee, or spend time with family. The goal is to create a mental reset so you’re not carrying the weight of the day into your next session.
- Review and Reflect: Use your downtime to review your trades and refine your strategy.
Recognizing Your Temptations
Temptations in trading are sneaky. They show up as little whispers in your ear, telling you, “Go ahead, make another trade, you’ve got this,” even when you know better.
Some common temptations include:
- Chasing Losses: This is the classic trap. You’ve had a rough day, and instead of stepping back, you keep trading in an attempt to recover. More often than not, this leads to even bigger losses.
- Chasing Overextended Runners: Maybe you’re bored, or you’re trying to “make the most” of what you think is a great market day. But you know you shouldn’t buy calls when the chart is that overextended…
The best way to beat these temptations is to recognize them before they take control. When you feel that pull, step back and ask yourself, “Is this aligned with my plan?”
If the answer is no, close the chart and walk away. No second-guessing.
You don’t need to make trades all the time, you need to make trades at the right time.
Knowing when to walk away, how to walk away, and what your personal temptations are can make the difference between staying in the game for the long haul or burning out early.
So, take some time today to think about your trading habits.
Are you setting yourself up for success, or are you letting emotions and temptations lead you?
The answer could change the trajectory of your trading journey forever…
Now, before we go, let’s look at:
💰The Biggest Smart Money Bets of the Day💰
- $3 million bullish bet on KRE 01/31/2025 $63.50 calls @ $0.94 avg. (seen on 1/16)
- $2.1 million bullish bet on HOOD 02/21/2025 $45 calls @ $5.25 avg. (seen on 1/16)
- $1.8 million bullish bet on KWEB 09/19/2025 $32 calls @ $2.34 avg. (seen on 1/16)
Happy trading,
Ben Sturgill
P.S. Winning trades don’t just happen — they come from sticking to a proven process…
Join the great Danny Phee — TODAY, January 17 at 12:00 p.m. EST — for a LIVE WORKSHOP where he’ll break down this week’s top Smart Money Sweeps.
Learn how to identify and capitalize on the market’s biggest opportunities — Reserve your seat now!
*Past performance does not indicate future results
