Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

eldad

Am I Willing to Lose on This Trade?

Recommended Posts

Hi,

 

This week a very nice question pop into my mind while watching a stock on my list and thinking should I trade it or not, the stock was above my pivot price, it did had an uptrend but still it had some move that left me with strange feeling,

 

So I asked myself am I ready to lose money on this trade? Is this trade is a trade that if I will look in a week from now a year from now I will say yes I am willing to risk my money on it? The answer for this specific trade was no,

 

It didn’t end in this, it wasn’t just to say I am not willing to risk on this trade I said one more thing and I think it is a must when you choose to let go a trade, I am willing to accept the fact that this can be a winning trade, but I prefer to be outside,

 

In the past I did decide to pass on some trades but when I saw they reached the profits targets I thought, it ate me alive, “ahhh I just take losing trades and the winner I am too afraid to trade”, and to be sure the only ones I remember are the ones I didn’t took but made money, not the ones that saved me money or emotional costs,

 

If you are not preparing yourself to the possible outcomes you are illusioning yourself in more than a way, you must accept both possible outcomes you will give up on a winning trade or a losing trade, you should be o.k. with both options,

 

I do this to take just the best trades now days, so I will rebuild my confidence in my system and in me, I remember in “Reminiscences of stock operator” when Jessi Livermore after losing all in the third or fourth time had just one more options and he waits and says I will wait for my best idea not just any one, this is what I am trying now to do, to get back on the horse by riding the best ideas I can, not average ones, just the best.

 

So in order to eliminate the average ones I ask myself Am I willing to lose on this trade?

 

Make the odds in your favor Day Trade

 

Eldad Nahmany.

#tobecomeadaytrader

Share this post


Link to post
Share on other sites

alternatively, work out how much you think you should make on the trade, and if its worth risking a loss multiple times on the same trade. This might give you more insight into why you want to enter in the first place.

Otherwise you will simply still take the losses and not make enough back to cover those.

Share this post


Link to post
Share on other sites
Well it is not an alternative as I still need to ask if I am willing to lose this R amount, and i do use this system,

thanks,

 

only if you want to trade for losses.

I know your choices here are between taking a trade and regretting it or not..(hindisght is bitch).....but unless you thoroughly record every potential trade including those not taken (and this cant be trusted in hindsight) you have no idea about which ones becomes 'bad; or 'average' trades.

 

You say "So in order to eliminate the average ones I ask myself Am I willing to lose on this trade? "

Every trade you take you are deciding to risk a loss. That is a given.

 

As you have a 'system' and within this system a measure of discretion....ie;.you chose to take or not to take certain trades and the fact you have profit targets also indicates you have thought about what this trade might expect to make (or is this some random element?)

 

so --- as an alternative to simply asking --- am I willing to lose on this trade, you could also (or alternatively ask) is this trade good enough in its idea that i would be willing to lose multiple times, BECAUSE there is enough profitable reason for the trade.

as you say...

 

"If you are not preparing yourself to the possible outcomes you are illusioning yourself in more than a way"

Share this post


Link to post
Share on other sites

actually nobody is willing to lose in any of the trade but it is sometimes bad luck which causes us to loose in the money . one should be enough strong to bear loosing the trade and also to improve and make some profitable trade .

Share this post


Link to post
Share on other sites
On 12/12/2018 at 4:50 PM, divyanshisharma said:

USe Stoploss and Target to avoid all this emotional stuffs!

Stop loss feature can help cut off loses earlier than they become too big to afford. Bad days can occur to professional traders as well however they are skilled money managers and use tight stop losses to eject from a bad trade as soon as possible.

Share this post


Link to post
Share on other sites
On 4/28/2022 at 12:27 AM, aimhi said:

Stop loss feature can help cut off loses earlier than they become too big to afford. Bad days can occur to professional traders as well however they are skilled money managers and use tight stop losses to eject from a bad trade as soon as possible.

Agree they mastered the art of cutting losses short and controlled drawdown is part and parcel of successful trading. 

Share this post


Link to post
Share on other sites
On 5/10/2022 at 8:13 AM, aimhi said:

The professional traders are the one who actually turned out their losing trades into profitable in my opinion.

How is this possible bro? Do you mean they learn the lessons from their losing trades?

Share this post


Link to post
Share on other sites

Yes many lose money in forex trading and leave markets however some loses more while chasing their lost money. Those who let go off their loses and learn how to trade eventually become successful in future.

Share this post


Link to post
Share on other sites

Traders often fail because they don't take their trades seriously enough. Most inexperienced traders are looking for get-rich-quick methods and are not fully prepared for how they will enter the market. In fact, some inexperienced traders gamble without even realizing it.

Share this post


Link to post
Share on other sites
On 6/15/2022 at 10:45 PM, CrazyCzarina said:

Traders often fail because they don't take their trades seriously enough. Most inexperienced traders are looking for get-rich-quick methods and are not fully prepared for how they will enter the market. In fact, some inexperienced traders gamble without even realizing it.

Agree that's why I watched first Hotforex webinars to learn thoroughly emotional and psychological aspects of trading in order to avoid gambling 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.