Hi Luc, you had a video a while back where you discussed a large loss you had. When getting into a trade in multiple locations, at what point do you actually just kill the trade and take a loss? This could either be due to less of a rebound occurring than expected, or possibly price just running against you too fast too far. Do you have any guidelines as to WHERE you would layer in on a given move?
You are viewing a single comment's thread from:
The large loss you are refering to was news that came out, that was unexpected and changed everything.. News always trumps everything... But that loss was in pennystocks, which are dangerous.. Often I will get unexpected news like: they are disolving all shares and they will be worthless, or the company that I am trading has commited fraud and has no value. News like this cannot be traded.. and everyone scrambles to get out, while they still can.. In this type of situation, I just take the loss and move on..
However if your wondering about a trade going bad in cryptos, I would have to say, its not the same situation... My rule is no stops, no bailing, I just exit on the next bounce, regardless of its a loss or a win.. always sell on the next bounce, and even if you do take a loss, you will likely, in a few minutes or hours be saying: Omg, it bounced all the way back up without me, and i got scared and took a loss that I didnt have to.. Ill discuss trades gone bad in an upcoming video.
This is kind of a big deal. Every trading book says how important money management is and to cut the losers quickly and let the winners run, but true to form, you do something different!
Yup. .. there are sooo many trading systems out there, and books .. Indicators, Fibonacci, patterns (head sholders, w pattern) and so forth..
I just try to explain why price moves the way it does. How people react to surprises and fear. Where to buy based on reading the chart, not predicting the future. Im a daytrader, so I am used to making fast decisions based on price movement, and naked charts.. No hokie pokie forcasting baloney.