DIFFERENT WAYS TO RUIN A PERFECT TRADE

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DIFFERENT WAYS TO RUIN A PERFECT TRADE

 DIFFERENT WAYS TO RUIN A PERFECT TRADE


PERFECT TRADE


First of all, what is a perfect trade?

It is the one which is planned. The trader searched for at least two reasons to get involved in a trade.
Besides entering he also looked for territories, in the space and time of the trading universe, where he
would like to accept his losses. Same is true for profits, means his stop and exit are defined

Taking Profits too Early:

You defined your exit point but later when you saw that you were in profit you quickly took it b'coz you dun wanna lose a profitable trade.

Keeping Stop Too Tight: 

Most traders take good entries but keep stops too tight that stocks are not even able to breathe properly. By so you just kill your trade.

Trail Stop too Early:

As soon as your trade starts moving in your favor, you move to stop to breakeven. A result of which you stopped out early and miss the entire trade sitting and watching the stock to hit you predefined target.

Not Taking Profit: 

The stock reaches your target but you want more from it. That's the right time to take away either full or at least partial with SL for the rest to breakeven.

Loosening The Stop: 

As the stock starts nearing your stop-loss, you move the SL away current price Averaging a Losing position: When the trade goes against your plan. you start averaging it and widen your risk. If you are to average, do it as near to your SL as possible so atop these widening you're risky from the current price as to minimize the risk.

The idea behind this post is that a trader needs to realize his mistakes.
The question of 'Why' you are losing is more important than 'What' you are losing or making in the market.

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8 Comments

  1. It's very interesting, Thanks for sharing a valuable information to us & Knowledgeable also, keep on sharing like this.

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