I’m a beginner in trading who has just started to learn the ropes. From what I can see, I often made trades based on intuition rather than analysis, which often resulted in losses. I didn’t always set stop-losses and didn’t control position sizes, leading to losses
What I’m learning these days is that a good trade puts me in green almost instantly. If a trade moves well in my favor, I move my stop to breakeven. I “expect” the trade to go hit my TP because that’s my thinking before I entered. If it comes back to my entry, I’m stopped out without a loss. I don’t care
If it goes the right way again. It was not a good trade. Any trade can be a winning trade. Since it goes against my strategy, it’s a bad trade until I modify my strategy based on review of accumulated results.
I notice that winning trades are immediately winning trades.I also find that a trade which goes half-way to my stop-loss price never comes back.
Imagine this scenario. The trade moves well in your favor. Almost touches your TP but comes all the way back to hit your SL. That’s enough to spoil your day and put you on tilt if your mental game is not strong. My version is to put on the trade, place your SL and TP, watch to see what the trade does and when it moves reasonably well in your favor, move your stop to breakeven and then forget it and go. Most experienced traders move their stops to breakeven (though not too soon). Tom Hougaard usually don’t use a TP. He rather keeps moving his stop forward based on his predefined rules until it is hit and he’s one if the toughest traders you’ll know.
Thinking they are ready after watching some youtube videos on trendlines, support and resistance, judas swing, RSI, MACD, etc. Any proven method must marry psychology to birth success.
Ugh what a timely post. Guess it’s time to close my trade.