That’s definitely what I have been experiencing in my paper account. Things start moving in the direction I expect and have a trailing stop loss but have had problems on taking action on getting out the trade for the big win that it was at the time.
Newbies prefer exit strategy when they see no gain in any trade. This strategy isn’t highly recommended by experts.
dont be too much invested in a single trade. It is one out of many.
Treat it like a business of selling newspapers. Each individual trade is not overly important. You have to do a lot of transactions.
Keep the risk small, so you are able to react and not panic.
That makes a lot of sense. It’s the long game, not a lottery ticket on each position.
Thinking about it, I wonder if getting huge position wins on the first few trades spoiled my mindset.
Newbie traders frequently use exit strategy to avoid losses but even then they suffer losses on average. They need rectification of this approach.
An old friend of mine years ago was a masterful reseller of things in the real world. He told me to don’t try to make your money when you sell, but instead make your money by buying the product at the right price.
He once told me that he could sell anything at the right price.
He was a salesman’s salesman, he could literally sell water to a fish.
The entry is much more important than the exit, but if you don’t know what the entry is or the exit is in trading you’re in a world of trouble.
My trading losses right now exceed negative 30k.
Has this been your highest?
Exit strategy can be a solution for you if you are left with no choice but to close a trade in loss. Newbie traders appreciate the strategy the most.