Why You are Trading ?
To make money, obviously. Don't ask Me silly things - Yeah, I read your mind. But why you never cared about your bleeding ? You keep on taking trades without a tradeplan and the height of it, Trading without a stoploss. Seriously ? Consider you are in some business ( a shop), someone comes and says " Hey, stock this up, it will go off shelves as hot cakes " without any second thoughts will you invest & buy all those ? Without even checking whether people will buy that product ??
To go more, if the product remains in your shelves for many days & product is deteriorating losing its value, making a dent on your capital invested in the product, will you still keep that waiting for consumers ? Won't you throw out, cut your losses & stock something else which consumers Buy ? That's what stoploss exit is...Know when you need to Get Out, No matter what, if stops hit, get out.
Are you Trader or Investor ? Decide based on what you want to Be...
There is great difference between both of them. An investor averages portfolio whenever there is considerable price drop, after considering the real potential of the stock. A Trader never averages positions after a certain point(stops), its like the product turned bad & you are stocking that more n more, it gives foul smell only.
If its bad trading decision, just accept , smile at it and move on... There is not even a need to explain yourself bcos of this, that n those it hit My stops. It's just a trade which hit your stops, as simple as that. Only if you have that mindset, you will sit and analyze why it hit stops any tweaks needed to your trade plan. But if you were giving Reasons to yourself like Trump had burger,Trump tweeted, Trump sneezed... oh man ! that's terribly wrong.
I'm New, what should I do ? I take trades only based on Your Posts...
Thats very sweet line which makes Me happy, but will it make Money for you ?! . Dear friend, What if I stop posting ? How you trade daily ? & if InsiderB posts a setup it will reach targets with No questions being asked just bcos InsiderB posted ?!
I have My own part of losing trades, even now if you check My profile you can find the trades which hits stoploss. I never claimed My Setups win everytime, its Just that I keep the probability of winner on higher side to make money. You know well, I rarely care about following up the trades, but when stops hit, accept & Move on... There is no fiddling with it.
We will have our own losing trades, a bad phase, accept & smile, Move on...That's what will make you as better trader accepting loss, that needs Guts & if you start accepting failures, it will open up why failures happen & you tend to analyze, the process of better trader begins when you accept failures. Don't try to sweeten that with reasons & console yourself.
So, Next time whoever makes a post - Check with your tradeplan first, Realize what you stand to lose, What is your stops, then look for how much potential profits are, then take Trade ! Never do that questionnaire in reverse. You will lose, Apparently !
Lot of Newbie's will be like I'm against you... No Dear :) This isn't against anyone here. These days it became mandatory to write disclaimer for everything, A Disclaimer itself needs Disclaimer - No wonder these days...
Anyway next time you take a Trade, Check what your trade setup says & Whats Your Risk. You will Win... Mic Dropped.