The following question & answer occurred at Traderslaboratory.com
Quote:
SONICSCOOTER
Hi to everyone, my first post.
Just wondered what the opinion was, say you are in a trade, you short and the trade goes up and you get stopped out, do people generally look to get back in or think that for the moment the stock or pair is not doing what i feel it should, therefore walk away from it for a while. maybe you were trading range bound and it starts to trend.
Thanks in advance for any replies.
Shane.
Hi to everyone, my first post.
Just wondered what the opinion was, say you are in a trade, you short and the trade goes up and you get stopped out, do people generally look to get back in or think that for the moment the stock or pair is not doing what i feel it should, therefore walk away from it for a while. maybe you were trading range bound and it starts to trend.
Thanks in advance for any replies.
Shane.
 |
Yet, if you consistently were in a losing trade that takes off and trends in your desired direction after it stopped you out for a loss...you need to update your trade method via any of the following:
Design a re-entry signal Improve your initial stop/loss protection method so that it gives your trades more room to breath Improve your entry signal so that it doesn't get you in so earlyThe above recommendations are via the assumption you have some sort'uv statistical proof after analyzing your trades that these losing trades would have been profitable had you done one of the above solutions.
However, if you have no statistical proof or you're only talking about a "few trades" that you're getting emotional about after witnessing how far they trended without you on board the train...learn to let it go and start preparing for your next trade opportunity.
Attachment:
063012-Bad-Trade-How-To-Respond.png [ 58.82 KiB | Viewed 440 times ]
http://www.traderslaboratory.com/forums/day-trading-scalping/13492-bad-trade.html#post153728
Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader http://stocktwits.com/wrbtrader
http://chart.ly/users/wrbtrader
http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
| Attachments: |
| 063012-Bad-Trade-How-To-Respond-1.png [ 9.14 KiB | Viewed 5724 times ] |