|
Quote: |
|
 |
|
|
Wanted to start a thread on shakeouts. What do you do when a position is going against you, but you still feel on a technical level, not emotional, that the position should stabilize?
Do you cover your position and take the loss? |
|
|
|
|
No, not unless you have an exit rule prior to your stop loss
|
Quote: |
|
|
|
|
Or do you hold your technical view and consider yourself a "strong holder" and maybe add to the position? |
|
|
|
|
Hold on to your techinical view, because that is your proven edge.
NEVER add to a losing postion. The trade has told that you are on the wrong side of the order flow.
Feeling as if you are a strong holder is an emotional attachment to THIS trade not your trading system. The result of this trade does not define you as a person or a trader. Failing to follow a systematic way of entering and exiting the market defines one as a consistent losing trade. Note I did not mention anything about being profitable, just systematic.
|
Quote: |
|
|
|
|
I'm interested to hear what goes through your mind as you see money flow out of your account on something that on a technical level should be stabilizing soon. |
|
|
|
|
I'm annoyed, but I accept it as the cost of testing my hypothesis.
|
Quote: |
|
|
|
|
I just hate that feeling of the shakeout, ya know? |
|
|
|
|
I know, but you are not being shook out, the market does not know who you are, you are just on the wrong side of the order flow at this time and price.
As am I.