Ten questions to ask yourself when you lose a lot of money in trading:
- Are you going against the trend in your time frame? Making money is mostly about going with the flow.
- In range-bound markets, are you trying to change the direction of the market? You should look for highs that are higher and lows that are higher. This is a trend. All time highs and lows also break out, which means that a trend could start. The difference between some markets and stocks can make all the difference in how well you do.
- There aren’t enough stops. Allow trades to fluctuate, and only get out when they go to a place that you think proves that you’re right.
- Does one bad trade cost you weeks or even months of money? The risk is too high if a single mistake costs you all of your hard work to build up your account.
- Are you trading in a place that you should just stay away from? There are some markets that are so volatile and choppy with gaps and reversals that your method won’t work in these places.
- Do you know when not to trade? There is a lot of money and emotional capital that can be saved by this.
- Is it time to stop trading your ideas and start trading the price of things? If you are more interested in being right than trying to figure out what is going on, then it is time to trade price action and stop trading your own ideas.
- Is it time to be more picky about the things you enter?
- When should you learn about how to exit a trade with a trailing stop or target so you don’t give back your money?
- Is it time to go back and change your trading plan or method because the market has changed?
- Is it time to slow down your trading and think more about what you do and trade less?
When You Lose A Lot Of Money In Trading. It is time to stop some time and ask yourself these questions.
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