I have been trading for allmost 2 years now, have lost some, have made some but when trading I am still hanging with loosing as litlle as I can.
I have tried various methods, some gave me good results and turned bad, some showed me on demo testing not to use them.
I wonder what strategies do you use when entering let’s say “wrong” positions? ( I still think there is at least 50/50 chance it will turn the other way, no matter how many indys or feelings are on your side). Even with “the edge” we never know what will happen…
So…
Do you just take the loss, do you hedge out and how, do you do anything else, any other method or strategy that helps you avoid taking the loss?
The hardest thing for me is to take the loss. I know I have to once in a while, but I rather don’t. I know it is a part of it all, but maybe there is a way around it. There are so many roads in the world that take us to our goals, so please, do share your experience and thoughts.
According to Van K Tharp(a psychologist who dedicated his life to find out the general behaviours of successful traders),
Their mindsets tend to be like;
Trading is just a game
Money is not important(I always keep saying this to myself. It helps)
It is acceptable if I lose money
It is always good to try other people’s trading methods, and learn from it.
I don’t think I gave you how to get over the feeling when you lose.:rolleyes:
I’m not really entitled to give you an advice. I’m just a newbie(4th grade) and try to give you info I read before!:D.
That’s my idea, Once you’ve made back your initial deposit then take it out and bank it. After that, it’s just a game and the numbers in your account ballance are just points in the game. That’s easy for me to say right now since I’m still a beginner and have a very small account balance
Haven’t spoken to you in awhile , I know exactlly what your saying. That has continued to be my main issue as well. I can pick the perfect entires a lot of times but when I am wrong I don’t want to give it back which I end up doing anyway.
The idea of getting out of a losing trade can be done depending on the trade. If you just happen to get in a lets say a extreme edge of a consolidation area and price conitnues to move back and furth. We will say you went long when if it moves down your loss increase. When price moves up near to your entry but your still negative. Take some of your trade off then when it goes against you on the next cycle add back near the bottom.
Once it moves backup your spread you are actually reducing your loss. You can continue to do this until the loss has turned into a profit. But normally it is better to accept a smalll loss and get in the right direction.
I have come to understand though that there are areas that will hold price and once thay are broken it is better to just accept the fact. it happened.
The above example can be used when the markets go quite in late session trading. But be carefull when you add on don’t add more than you started with. Only add back what you had taken off don’t compound your loss. The key to all trading is the risk. I don’t really believe in R/R anymore just believe in what your willing to risk to enter a given trade. because I think people limit their gains by having a goal in mind . Leaving money on the table. Take what she will give…
You and I will get past this but you know as well as I do that the sooner you get out of that losing trade the sooner your going to make it up. One of the best traders I know has less than 1 year trading live. Never uses a stop over 20. He will normally close below 10 if price breaks his entry high or low.
His goal is 100 pips per session trading all 3 sessions that is 1500 a weekly goal he makes that normally by late tuesday or wed. So why let them run Focus on the correct entry then lockin your profits asap.But also always leave a little on the trade once your in profit to extract all you can.
