I had my first big loss today at around $150. Some of you might think is that all, but to me That means a hell of a lot. One rule and the most important one at that I threw it out the window, made a plan and ignored it moments later I'm down 80 -90 cents. Cut losses quickly tim was right "if you don't cut losses quickly all lose little profits your making that may have taken 2 to 3 days could be lost with just one trade". what I made in the last two days has now been lost because of not sticking to the planit's all about the plan, plan, plan. Onwards and upwards studying a hard work to hopefully have freedom one day.
Posted Jun 02, 16 3:19 PMbyWrightknight
Categories
Classic Lessons
Sometime cutting losses to quickly can lead to large amounts of lost profits.
@Syndicated_Trader35 "sometimes cutting losses too quickly can lead to large amounts of lost profits" but not cutting them quickly may also lead to very big large losses. In my opinion your NERV trade lost was an exit out of emotion. A stock of that price (or $10 or above) can easily move $1 dollar so cutting it .22 cents from your original entry seems like it was based on emotion rather than let the trade continue with it's bullish pattern.
@Syndicated_Trader35 and though it went $2 up, it could have went south $2 as well, so cutting losses quickly is a better strategy. I rather lose potential profits than lose actual money.
That's the thing but being safe and making profits bigger than your losses and you can't go wrong, stick to the plan and don't be greedy.
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