I am going through my strategy plan and more than likely I will mirror what I did when I started in stocks, catch the trend after it starts before predicting it, and tighter stop loss orders.
One thing I am curious is the mentality that you have. On the concept that after you close a position and look back to see that the breakout was longer than you thought, or your stop loss orders should have been wider, do you think “The profit I could have made is a loss in my book”? Or do you simply just shrug it off and be thankful you came away with profit?
With risk aversion in mind, it’s easy to type and say “just be happy with profit”, but we are humans. So be honest, does your greed show up after closing a position?
on a personal note, i believe i BREAK EVEN result is not a lose, just keep in mind 0 is not negative and way better than a lose, if it happens u missed a profit shrug it off, dont let it affect u, u lost nothing, the more u get to that mind set that it could? or what if? the more it will go against u leading you to impatience and making you commit mistakes. take it slow, it might be gone now but there is always tomorrw
I have reasons for entering a trade, the market doesn’t always agree with my reasons. A little profit is better than a loss but really a trade is timing, entry, and exit. If you timed the trend up/down (changes fast) and your profit is realistic you will have money for your next trade. Get the timing wrong and expectations are not realistic will turn into a loss. This is not simple, there is a lot on risk/reward, position size, etc etc. However, the market does not care about this, it is going in the direction it wants at that moment, question is did you enter in that direction? And what is your expectation of that direction (realistic?).
My first reaction is to say why make trading more complex than it already is by equating missed profit opportunities as losses - bit like kicking yourself in the head for being normal. But i guess when i think about it i actually consider these as losses whenever i close a position manually instead of waiting to see if my target is hit and then seeing price go to that target level. But in other cases, if i have pre-determined my target then i am not bothered if price continues beyond that point because my trade has succeeded as planned. This is a matter of trade discipline not opportunity.
I agree. I’ve never seen that as a missed opportunity, for myself. It might have been a missed opportunity for someone else [I]who’s trading a different system from mine[/I]. I hope my answer offends nobody. I genuinely don’t understand this. :8:
Money, they have a fancy name on it, called fOMO - fear Of Missing Out.
Many times have thought about this one, used to think that traders have two enemies in the thought process, the proverbial fear and greed - (no capitals on each word since neither deserve respect).
I have long time concluded that fear in all it’s forms is the only enemy, the missing out is probably number one, especially so if a learner trader is active on the internet.
Causes the trader to chase, to set a straddle pre NFP, to believe some guru on twitter, to figure that the USD must rise because efx say that the banks say so, for fear of missing out, get in quick.
There are a few other fears, they can be dealt with as time goes on, since we are on the Island, for learners learn first how do deal with fOMO, as you learn he will raise his ugly head more often, one remedy is to realize the continual nature of the market, it’s impossible to miss out since it offers opportunity every single day.
Sometime I am modify stop loss on break even point, which this can do if already floating profit at least 10 pips depending broker rules, but indeed sometime volatile market can hit stop loss quickly due trend always up and down
As long as my account isn’t decreasing in size I do not think I am taking a loss. Yes, I might have missed some opportunities to trade, but the market never stops moving, there will be new opportunities, and for all I know they might be better than the one I missed. It’s important to maintain positive thinking.