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How to let go of Loosing Position.?
Probably the biggest problem a Discretionary trader faces. As a Chain Reaction, A Spiral Of losses gets started after this.
Will try to discuss some Practical Solutions in this Thread.
#Retweet if you find this useful.
How to let go of Loosing Position.?
Probably the biggest problem a Discretionary trader faces. As a Chain Reaction, A Spiral Of losses gets started after this.
Will try to discuss some Practical Solutions in this Thread.
#Retweet if you find this useful.
Losses are inevitable in Trading. That's a Fact. Nobody can be right all the time.
So, The objective, therefore, is not to avoid losses but to Minimize them.
For every trade, There's always a level where long or Short gets invalid. & These levels are easy to find on charts.
2/n
So, The objective, therefore, is not to avoid losses but to Minimize them.
For every trade, There's always a level where long or Short gets invalid. & These levels are easy to find on charts.
2/n
Let's take an Example.
Assume this is a Chart you're currently looking at in live market. And have an Active long trade here.
The marked level 21250 is where Price took support Several times & Now it's Broken below it. It's a Clear Signal that long Structure is Broken. 3/n
Assume this is a Chart you're currently looking at in live market. And have an Active long trade here.
The marked level 21250 is where Price took support Several times & Now it's Broken below it. It's a Clear Signal that long Structure is Broken. 3/n
This is what happened further. Imagine the longs that didn't exit at breach of 21250 & waited price to recover.
So, The First Solution,
i) Learn to Mark Proper Support & Resistance levels in Chart. Shift the Timeframes in 15M/30M/1H/2H/D/W & Find where most IMP Zones are.
4/n
So, The First Solution,
i) Learn to Mark Proper Support & Resistance levels in Chart. Shift the Timeframes in 15M/30M/1H/2H/D/W & Find where most IMP Zones are.
4/n
Putting SL Based on these Derived S/R Levels.Lots of Folks misunderstand SL for Mental SL. The Very First element of loosing control is keeping SL in mind rather keeping it in System.
If you're Afraid of Whipsaws, then Adjust the Position sizing & use higher buffer.
5/n
Finally, the Real Problem starts when you don't have SL in System & You start to see the MTM Going deep Red. That's where HOPE Comes in. Even If you know you're wrong, you start to Justify the Position, start seeking Opinions from Social Media, etc. All in desparation. 
6/n
6/n
Hope might work Really well in Real Life, But it's a Disaster in Markets lots of times. So, Instead of Hoping, Better to Keep Tab on Yourself & Cut the Position on Time instead of Going thru this trauma.
Making Strict Rules & Following them is a First Baby step for trader. 7/n
Making Strict Rules & Following them is a First Baby step for trader. 7/n
There is one more common Feeling that takes place - Stubbornness & Ignorance.
Both of these are Super Harmful.
Market is supreme. Aka Market Sabka baap hai. Don't mess with it.
The Only Friend you've here is Knowing & Managing Your Risk.
8/n
Both of these are Super Harmful.
Market is supreme. Aka Market Sabka baap hai. Don't mess with it.
The Only Friend you've here is Knowing & Managing Your Risk.
8/n
Keep These Facts into Mind whenever you face any situation of emotional takeover.
- Marking Proper S/R on Charts so you don't get blindsided
- Put SL in System, Not In MIND. Else, it'll stay in Mind Forever.
- Patience Matters Only at Right time, Don't show it at wrong places
- Marking Proper S/R on Charts so you don't get blindsided
- Put SL in System, Not In MIND. Else, it'll stay in Mind Forever.
- Patience Matters Only at Right time, Don't show it at wrong places
- Instead If Watching MTM For Every Tick, Focus on Chart to Know your waters.
MTM is a Scoreboard..Chart, Price & Volume is a Battlefield.
- Cutting a Loss is More Emotional Process than Technical.
EMOTIONAL DISCIPLINE Matters The Most. Don't Ever take it for Granted.
MTM is a Scoreboard..Chart, Price & Volume is a Battlefield.
- Cutting a Loss is More Emotional Process than Technical.
EMOTIONAL DISCIPLINE Matters The Most. Don't Ever take it for Granted.
