I was not expecting that huge drop in the dollar, and im betting a lot of others werent either. Must have caused a lot of losses .... sure did for me, and just as I was having my epiphany of trading. Finally all the basic good habits of trading were making sense, and then 3 days after I was resolutely going to follow good habits - im back in bad habits in a big way - trading without stops - and boy did I pay for that, such a massive drop in the dollar!!! So now I have to regain my losses, but finally thank goodness I know why all the recommendations were made. is it easy to follow them .... No. Is it easy to trade the way 95% of traders trade .... yes. So lets try and follow the risk management plan as well as the good trading habits.
I am quite sure that one of the aspects least applied and least understood is the degree to which unrealised and realised gains or losses are related, or rather is hould say that most everyone totally understands that an unrealised gain equates to a real gain immediately, but somehow that unrealised losses are something fictional which might go away if you leave them alone.... I think the most sneaky killer in trading is the unrealised loss - because 95% of traders leave them alone till they are really big and then become a massive loss. 3/4 of your account wiped.
so - finally after tha bad habits have hurt me so many times - can I finally change my ways.
1 Use risk management
2 dont close winning trades when they have only made a small gain
3. close loosing trades