You are viewing a single comment's thread from:

RE: Day 1: +$2,562.50 - A great beginning

in #trading7 years ago

Well it's good that you know what you've been doing wrong, most people don't, or won't admit it !

What you've been describing is the reason that people lose at trading, not waiting for a trade to finish and taking smaller profits earlier. Most also take too big a loss as well when it goes the wrong way which is the other side of the coin.

"I'm at my stop level, but I'll just let it go a little further... ok, a little bit more now... am sure it's going to turn around any second... just a few more points.. Oh crap, I'm down 10%" he he.

Sort:  

Hah! The thought has definitely entered my mind on the losses but a few weeks ago messing with low float stocks I experienced how that could very rapidly backfire. It’s very clear to me that this is a game of having a plan and the discipline to stick to it.

Absolutely, it's the thing I struggle with the most, every time I mess with the plan it backfires, always :-) That's why I've forced myself now to put on a trade with a profit and loss target and walk away.

You can drive yourself insane second guessing every trade, thinking you've made a mistake halfway through, justify to yourself that you should take early profits or take a smaller loss.

My trading is very mathematical based now, on probabilities. So I know if I don't stick to 'the plan' then it throws the maths out the window and it's just gambling instead.