Saturday, May 15, 2010

FOCUSING ON YOUR STOPS

Again, about StopLoss...
In every trades, I doubt that the most concerned about is about STOPLOSS. People hate being a loser. People dislike talking about losing. There's No Biography about losers, except for infamous criminals that suceed with his/her careers. Everybody want to be a winner.

Maybe you already know that in this world, there's something we can control and can't control. Ironically in trading, the only thing we can control is our entry and exit. We can't control our profit. The market decide it. But we can control our loss, in the form of our stop loss.

Yesterday I slipped out my Stops. I was too late entering my Stops and the Price keep countering my positions. I was jaded and then my discipline began wearing off. I "Hope" the market will retrace a bit because it went too far down. Fortunately the Black Swan wasn't coming and I can get out with little profit. However, if something bad happened, then my Profit will evaporate plus a lot more. This is how a little bad thing become a big one. I was lucky on Friday. Someday, it won't be.

Wish you a good trade all the way

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