Accepting Risk as a Trader

I'm an engineer. I think like an engineer. I approach things as an engineer. I solve problems like an engineer. I always search for the right solution, or at least, the best solution available at the time. In the process of learning to trade I'm had to reprogram my brain in many aspects.

One of the hardest, as it is for many, is accepting risk. Not that I shy away from risk. Or even have a problem clipping in with more size. The problem I struggle with is when I'm up, not wanting to give anything back and I end up cutting my winners early.

I definitely don't have this figured out but a couple of the tactics that I've found helpful for me are:

1. Scaling out.

This enables me to realize some profit while giving me the guts to stick it out for a larger move.

The downside is that you can easily end up taking full sized loses. I combat this by also scaling out when taking a loss.

2. Defining the risk up front and making myself accept it as the ante to play.

I wouldn't expect to sit down at a hand of poker without putting up an ante, I shouldn't expect any different from the market. This mindset also encourages me to choose good risk to reward trades.

That's it. Just figured I'd put this down "on paper". Hopefully it helps someone, either way I'm sure it'll help me in the future.