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RE: I'm a little discouraged today.. Still let's take a look at the market..

in #trading7 years ago

This is one of the most common problems traders have.. Because everyone wants as much profit as possible.. But the market will always surprise you.. You take your profits early and it keeps going up and your left thinking "wow I could have done so much better on that trade".. Then the next time you hold on a little longer and the whole thing turns on you and you didnt participate in the bounce and a great trade turns negative.. How to participate in every bounce? I've answered this question so many times, oh my.. Basically you set up a sell order right after you get a position, incase of a sudden spike, thats like free money, because you really didnt invest any time holding the position.. But if the spike doesnt happen then you get to layer, and the lower and lower a panic goes the more safe the position is, so you can feel more and more confortable to take bigger and bigger sizes.. Keeping in the back of your mind what your true average price is (break even) then when you get a bounce happening, you can start to layer sells as soon as you are in profit (past your break even) .. Focus on participating in the bounce, not on trying to sell at the top.. Just sell a little here and there as it bounces.. if it bounces fast then sell more quickly.. but if its a slow crawl up then sell only a little here and there and expect it might really bounce high... This is because a slower move higher signifies the panic is likely over and there will be some bidders forming support with time.. So yeah, I guess there is a bit of an art to participating in every bounce, but theres some pointers for you...