|stop loss sell order|
The face above pretty much sums up what happened when I had a conversation with one of our VIP MEMBERS => HERE! I found this rather very troubling.
This particular person, lets call him Jim. Jim emailed me to discuss his overall risk and money management plan. He was quite angry and frustrated that his recent stop loss sell order did not work, and that he was also moving his stop loss sell orders out several times to avoid being stopped out of the market.
THIS IS A BIG NO NO!
What Jim was really saying to the market is........
1) I am better than the market!
2) I can beat the market!
3) There is no need to worry as the market will come back to my price!
BULLSHIT! Is all I can say to that.
Jim soon learned that his account was seeing money slowly slip out of his grip and he was at fault.
As a trader you must realize that you will not win on every trade you make. Even the best traders screw up royally from time to time, but they do have stop loss sell orders in place in case things do turn against them fast.
When I first started trading, I fell into bad habits like widening my stops and adding to a losing position. While you might feel like its the right thing to do initially, you soon realize that things turn sour pretty quick and it is suicide in my own opinion.
Adding to winners is ok, but when you are taking a loss, adding to that loss is just asking for trouble in my book. The thing is as human beings and as traders, we all hate being wrong, I will be the first to admit it. However its not about being wrong in the trading game, its about how long you stay wrong, and what you do about it in the first place. Do you stay wrong? or do you get out when things go against you?
Stop losses are there for a reason, and even if you do get stopped out, do not worry, just think of this video clip and what “The Fonz” (FROM HAPPY DAYS) does in it.
WHAT IF YOU KNEW WHICH WAY THE MARKET WAS ABOUT TO MOVE BEFORE IT HAPPENED? CLICK HERE To Join Our VIP ELITE GROUP -- FREE 10 Day Trial Offer Today!
Powered by 123ContactForm | Report abuse