2010 New Year Trading Resolution
My 2010 trading resolution would be to have more discipline in my trading, specifically it would be to get comfortable with losses. A key to successful trading is to keep your losses small, so that you can continue to survive in this business. You don't want a few large losses to wipe you out. One way to reinforce the discipline is to have stop losses set as soon as I put on the trade. I've tried the mental stops, but I've found that they don't work for me because I get too emotionally attached and don't exit and cut my losses.
2 comments:
Agree totally with premise: Accepting small losses and not allowing them to become large losses is essential for success.
Disagree totally with stop-loss idea: You MUST learn to trade without those emotions. To achieve longer-term success, emotionless trading is a requirement.
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Mark,
You disagree with stop-loss idea? So do you make trade adjustments if your trade goes against you? Isn't stop-loss one way to implement risk management in your trading?
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