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.

Recommended Posts

One thing that I see that catches traders up all the time is knowing their limits. There are times when it is probably wiser to step away from a trade or not trade at all.

 

Sometimes the best favor you can do for yourself is to take a break.

 

It doesn't matter who you are or what kind of trading you do. There are going to be times when you need to step back and take a break from things. This can happen after a bad trade, a big loss, and even after a really good performance. It can help you get things back into perspective. It also allows for an opportunity for you to review your trades, and learn from any mistakes or plans that you think cost you in the long run.

It is easy for traders to get caught up in the action.

A lot of amateurs find themselves getting swept away in the wave of enthusiasm. The trading highs that come with winning are just as strong as the pull of panic that can accompany a loss. It is up to the individual trader to look at themselves in the mirror and admit when passions and emotions, rather than common sense, are at the helm.

 

Huge market movements like those that come on the waves of spiking prices are often irresistible. The trouble is that these times of high volatility can sabotage careful trading plans. Remember that there is no circumstance under which it is wise to enter a trade without a solid plan that includes:

 

- specific entry points based on your analysis

 

- specific profit exit level

 

- specific loss exit level

 

Even at the best of times it can be an exercise in patience and risk tolerance to trade. You don't want to muddy the waters by trading during extreme market events until the complete macro picture is available. An example of the kind of action I am talking about is relative to the panic over debt issues. When news is trickling in 24 hours a day from Europe and the United States, or when a big ratings agency decides to lower a AAA credit rating over the weekend, you can be sure that there is an environment where markets can gap through your stop prices or leave you very vulnerable. Trading in futures is risky enough without adding that level of anxiety.

 

Every time you trade you should ask yourself what is motivating you.

 

Before you enter any kind of trade you should ask yourself what you are looking for. Are you following a solid plan based on careful analysis and rules? Are you making sure you are only using risk capital? Can you really afford the loss if the market moves against you? Are you just trading to "be in the market"? Understanding the answers to these questions and being honest with yourself is important. These aren't just warnings to pay lip-service to. There are substantial risks of loss in all trading, and that's why you have to know and respect your limits. It is always ok to sit things out. No one ever loses money by staying on the sidelines and out of trades in a volatile market.

 

Best Trades to you,

 

Larry Levin

Founder & President- Trading Advantage

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.


  • Similar Content

    • By MoneyMaker-Research
      The Indian rupee snapped two-day losing streak against the dollar in a seesaw game with the greenback on Thursday and gained 13 paise to trade at day’s high level of 69.71/$.
    • By MoneyMaker-Research
      Around 31 stocks rose to touch their 52-week highs on NSE in Tuesday's session.
      Among the stocks that touched their 52-week highs were Adani PortsNSE -3.02 % and Special Economic Zone, Axis BankNSE 0.32 %, Bajaj Finserv, Bajaj Finance, DCB Bank and DCM Shriram.
      HDFC Bank, Housing Development Finance Corporation, Just Dial, Kotak Mahindra Bank, Larsen & Toubro, State Bank of India, Siemens, Titan Company and UPL also featured among the stocks that touched their 52-week highs.
    • By trading4life
      Hello, My name is trading4life.
      I just joined this forum.
  • Topics

  • Posts

    • $CSCO Cisco Systems stock, nice top of range breakout, from Stocks to Watch at https://stockconsultant.com/?CSCOSEPN Septerna stock watch for a bottom breakout, good upside price gap
    • $CSCO Cisco Systems stock, nice top of range breakout, from Stocks to Watch at https://stockconsultant.com/?CSCOSEPN Septerna stock watch for a bottom breakout, good upside price gap
    • MNST Monster Beverage stock, top of range breakout above 60.45, from Stocks to Watch at https://stockconsultant.com/?MNST
    • ...hallucinates.... Student: “What if we gave the monkey LSD?” Guru: “The monkey already did LSD”
    • Question: To those that had/have cancer, what were the signs that made you think “something is not right here” to make you go see a doctor? Answer: So, 5/25/2018, I woke up, got ready for work, and as I walked to my car, I started gagging. Like something was stuck in my throat and I needed to clear it. And then it went away.   But 10 minutes after that, I was T-boned at 40mph on the driver side door. But what made me see a doctor was while my muscles felt better and bruises were going away, the gagging still continued, I started having fevers, my neck felt swollen, I was having such a hard time breathing, and I'd have random sharp pains in my chest, but not from where the seat belt saved me.   2 weeks after the accident, I finally see an urgent care doctor, who looks me over, tells me I'm fine, but luckily requests a neck X-ray. And I ask for a chest X-ray, which he rolls his eyes but let me have (most of my pain was in the neck, so I understand).   The very next day, he calls and says “So, that chest X-ray shows there's a 4 inch mass on your heart and lungs, and your lungs have been filling up with fluid, as well as in your pericardial (heart) wall. We need you to come in tomorrow.”   Turns out the big mass, due to the accident, caused my heart and lungs to tear and fill with fluid, the swollen neck and gagging was caused by 2 metastasized tumors, and the fevers and weight loss were symptoms. Stage 4b Hodgkin's Lymphoma.   But thankfully, we went very aggressive with chemo (and had a lot of bad side effects that don't normally happen to patients), and now I'm about 16 months cancer-free. Yay lucky X-rays! Rachel Jurina, Quora Source: https://www.quora.com/To-those-that-had-have-cancer-what-were-the-signs-that-made-you-think-something-is-not-right-here-to-make-you-go-see-a-doctor   Profits from free accurate cryptos signals: https://www.predictmag.com/  
×
×
  • Create New...

Important Information

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