When Should You Take Profit?

Want to be on the show? Send us a question, a voice note or a quick video to marketsandmindsets@ig.com Why do so many investors sell their winning trades too soon, while holding onto losing positions for far too long? In Episode 3 of Markets and Mindsets, the team are joined by experienced trader David to explore one of the most common psychological traps in investing: knowing when to let your winners run. From managing emotions after a string of losses to building trading strategies that remove impulsive decision-making, this episode dives into the habits that separate disciplined investors from emotional ones. Whether you're just starting out or have years of experience, the conversation offers practical techniques to help you build confidence, trust your process and make better decisions over the long term. In this episode: Why investors often cut winning trades too early The psychology behind holding onto losing positions How previous losses can influence future decisions Why position sizing can reduce emotional decision-making The importance of defining your exit strategy before entering a trade How stop losses and profit targets can help build discipline Why journaling your trades improves long-term performance How experienced traders recover after difficult periods The role routines and mindset play in better decision-making Why successful investing is about consistency, not perfection Chapters: 00:00 – Introduction 01:14 – David's trading dilemma: exiting winners too early 02:36 – Why investors bank profits too quickly 05:12 – Stop losses, scaling out and protecting gains 06:16 – Do experienced traders ever stop struggling? 07:35 – Trading journals and building a strategy 09:04 – Position sizing and managing emotions 11:34 – Learning without reinforcing bad habits 13:32 – Practical ways to build better trading discipline 15:58 – Creating routines for better decisions 16:38 – Final thoughts Enjoyed the episode? Subscribe to Markets and Mindsets for more conversations exploring the psychology behind better investing. If you enjoyed this episode, leave a rating or share it with someone looking to become a more thoughtful investor. This podcast is provided for educational and informational purposes only. The content presented is not intended as personal investment advice or a recommendation to buy, sell, or hold any particular securities or investments.