Traders Not Trades Bring Wins or Losses
You know the difference between winning and losing trades -- we've all experienced both and know the joy and the pain well.
However in considering the loss of a trade, the strategy is usually sound, it is the trader that came up short.
Well, yes there is a good chance this described you. In this article I will talk about ways to change all that. Your stop loss order is a really good place to start, this should be decided before you place an order.
If you want to talk about position entry, it should include a comprehensive explanation of stops. Why do so many investors fail to take advantage of stop losses? It you are one of those not using them, listen up, you'll want to know this. Stop losses can spell the difference between meager late retirement and on time comfortable retirement.
Plan and place stops equals your plan to win, and you are prepared to have a loss but make it through to continue trading. A look at the traders psychology of loss taking is in order here.
A professional trader needs to know where the exit point in their trades are before they start trading. Having a visual of a wrong trade is key so a trader can know when to get out fast. This is a basic knowledge that all pro traders need to have.
Can you answer the following questions?
1.) What are the indicators for staying put, or getting out?
2.) Is there a set point that indicated to you to sell losing stocks?
3.) Do you have a rule of when to move your stop to break-even?
If the answers to these questions elude you, you are not unique. What it says though, is that you need to get some regulations set for yourself, particularly when going to short stocks. But these trading rules won't amount to a hill of beans if they aren't used. If you aren't using them you need discover why it is you don't manage your risks in a professional and non passive style.
There are 2 base reasons why Investors won't take a loss:
1. Admit they are wrong? No Way!
A realized loss is a great big unavoidable acknowledgment of wrongness. For many traders, this is just too painful to admit. It's interpreted as an allegory for a total life failure or feeds a persistent, negative self-image.
A trader like this experiences real pain from the loss, and would rather deny it than fess up to the fact that it is giving them the pain. Quite often it requires a total loss before he can begin to change. To quit trading is the only other alternative.
2. The losing position is too big relative to their overall portfolio value so they can't afford take the loss.
The loss is a real loss, it is not solely on paper, the stock/bond option has the value of the quote, even if you don't see it.
These two categories of people are not looking at the trading business with clear eyes. They are looking at it with blinders on and this narrowed vision is plaguing traders everywhere. Big business, small business, large portfolio and small, the elite crowd and the common man.
Are you squirming in your seat because as you read this article you feel powerless and/or angry? That is a good thing. It tells you that you are ready to make the change.
The winning trader uses a different strategy from the losing trader by regarding the pain from the loss in an impersonal way. They use the loss as a sign that something went wrong with their approach, or their execution, but NOT that something is wrong with them.
A winning trader distinguishes himself from what he does. They are aware that their worth as a human being is not linked to their skill at trading, but that they will need to increase their skill and experience to improve their approach and execution. They use the pain they feel to motivate themselves and increase their drive to be a better trader.
These are responses you learn and you can control them. Losses bring pain AND the possibility for growth. It is all in what action we take after the pain comes that is most important, not the actual losses.
Stick with my proven ETF Trend Trading system and make winning a habit. Study; ask questions and monitor your position size relative to your portfolio and you will end up on the winning side more often than not.
"Proper Stops and risks" are main points in my program and reminding you constantly of that is an important part of my mentorship program. Once you have gone through my program completely and thoroughly understand it, you will still want me to tell you "Don't move your stop" and "Be sure to take profits when my system tells you to, not earlier or later" In fact the mentorship program is probably valued higher than the course itself. - 23210
However in considering the loss of a trade, the strategy is usually sound, it is the trader that came up short.
Well, yes there is a good chance this described you. In this article I will talk about ways to change all that. Your stop loss order is a really good place to start, this should be decided before you place an order.
If you want to talk about position entry, it should include a comprehensive explanation of stops. Why do so many investors fail to take advantage of stop losses? It you are one of those not using them, listen up, you'll want to know this. Stop losses can spell the difference between meager late retirement and on time comfortable retirement.
Plan and place stops equals your plan to win, and you are prepared to have a loss but make it through to continue trading. A look at the traders psychology of loss taking is in order here.
A professional trader needs to know where the exit point in their trades are before they start trading. Having a visual of a wrong trade is key so a trader can know when to get out fast. This is a basic knowledge that all pro traders need to have.
Can you answer the following questions?
1.) What are the indicators for staying put, or getting out?
2.) Is there a set point that indicated to you to sell losing stocks?
3.) Do you have a rule of when to move your stop to break-even?
If the answers to these questions elude you, you are not unique. What it says though, is that you need to get some regulations set for yourself, particularly when going to short stocks. But these trading rules won't amount to a hill of beans if they aren't used. If you aren't using them you need discover why it is you don't manage your risks in a professional and non passive style.
There are 2 base reasons why Investors won't take a loss:
1. Admit they are wrong? No Way!
A realized loss is a great big unavoidable acknowledgment of wrongness. For many traders, this is just too painful to admit. It's interpreted as an allegory for a total life failure or feeds a persistent, negative self-image.
A trader like this experiences real pain from the loss, and would rather deny it than fess up to the fact that it is giving them the pain. Quite often it requires a total loss before he can begin to change. To quit trading is the only other alternative.
2. The losing position is too big relative to their overall portfolio value so they can't afford take the loss.
The loss is a real loss, it is not solely on paper, the stock/bond option has the value of the quote, even if you don't see it.
These two categories of people are not looking at the trading business with clear eyes. They are looking at it with blinders on and this narrowed vision is plaguing traders everywhere. Big business, small business, large portfolio and small, the elite crowd and the common man.
Are you squirming in your seat because as you read this article you feel powerless and/or angry? That is a good thing. It tells you that you are ready to make the change.
The winning trader uses a different strategy from the losing trader by regarding the pain from the loss in an impersonal way. They use the loss as a sign that something went wrong with their approach, or their execution, but NOT that something is wrong with them.
A winning trader distinguishes himself from what he does. They are aware that their worth as a human being is not linked to their skill at trading, but that they will need to increase their skill and experience to improve their approach and execution. They use the pain they feel to motivate themselves and increase their drive to be a better trader.
These are responses you learn and you can control them. Losses bring pain AND the possibility for growth. It is all in what action we take after the pain comes that is most important, not the actual losses.
Stick with my proven ETF Trend Trading system and make winning a habit. Study; ask questions and monitor your position size relative to your portfolio and you will end up on the winning side more often than not.
"Proper Stops and risks" are main points in my program and reminding you constantly of that is an important part of my mentorship program. Once you have gone through my program completely and thoroughly understand it, you will still want me to tell you "Don't move your stop" and "Be sure to take profits when my system tells you to, not earlier or later" In fact the mentorship program is probably valued higher than the course itself. - 23210
About the Author:
Learn how it's very possible to make 6% per month in your investment accounts using etf trading! "Big A" is a recognized expert in the world of etf trading system & reveals etf secrets that have been kept under wraps by hedge traders for years. Get his free report & webinar today!
posted by X - Men @ 6:01 AM
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