8 Common Problems That 90 % of the Traders Face
Problem 3: Letting small losses turn into a big one.
Unwillingness to cut losses at the predefined price resulting in bigger losses, tend to move stop loss away.
Causes & Solutions:
This is caused by unwillingness to admit one’s mistake or put too much emphasis on trade usually is due to oversizing on one single trade. Trading is a probability game, hence losses and winners are a part of the game and we do not know how it will play out.
A very simple solution is to predetermine where your stop price would be before entering a trade. Put in a stop order right after entry has taken place. Do not move your stop order once the trade has opened, because when you have money at stake chances are your mind is bound by some biases, rather let the stop order hit and evaluate the chart again.
"I know how to lose, therefore I win." - Trading Minds.
"I think there is a difference between gambling and taking a calculated risk. - Edmund North
Gambling is holding onto losing trades, and hope for the price will come back. Taking a calculated risk is the willingness only to accept whatever risk that is predetermined
Last but not least
It is impossible to overcome all your mental obstacles just by reading books or watching videos alone. It requires hours of practices and dedication in order to get your mind reprogrammed. Without this, you will end up making the same mistake you promised yourself not to again and again.
However, with the right framework, this can be done effectively and save you from years of trials and errors, it also means money being saved from giving it to the market.
Learn how our "core of successful trading framework" that helped hundreds of traders around the globe obtaining consistency in trading in as short as 3 weeks time.