DislikedHey Bo, just suffered a pretty big loss, I am taking a break from forex for a day or two, just been stressed with school, and this is just adding onto it.
I was just wondering though, for future references, you mind explaining how exactly you set stop losses, and how exactly the stop and reverse might work.
I took a long yesterday, and it didn't make it to a high, just failed and shot down so fast, market is ranging and everything, but I didn't follow a good stop loss strategy, and lost quite a bit,(luckily I stil netted pips from last week). But this was a good lesson to learn I guess about how to minimize loss. I am assuming you set losses low of previous candles usually? I'm kinda ashamed by the loss to so it is kinda kick in the pants not be irresponsible and emotional over trading. But I think it takes a big loss to understand that properly.
Now I think if I had stoppped and reverse I would have definitely recovered loss and had a decent profit of pips, so I am just wondering if you could outline how exactly you would go stop and reversing a trade.
Anyway Good Luck with everything. Luckily I followed really good money management, and I'm not close to being in a danger zone when it comes to finances. Lesson learned, take a small loss because you can recoup it later, but risking a big loss will take even longer to recover.
Thanx a lot for everything.
I'll hope to have a better day in weeks and days coming up.
TheLegace.Ignored
Most likely when you let a bad trade run your not acting within the rules you set for yourself when you plan out your trades. Keep strict discipline to the rules you set for yourself. Ill bet you had a point picked as a stoploss and didnt use it, am I right ?
Stop and reverse is risky sometimes since in a choppy market it can compound losses, dont use a stop and reverse tactic if you are seeing signs of indecision in the market. Stop and reverse would be used at the point you set for your stoploss though and when you do dont try and make a huge profit from it you can only take what the market is offering look more just to recover your loss or just a portion of it and no more, once your over the loss step back and start over again.
If youve got something else taking your focus off trading...dont trade wait until youve got a clear mind or you will make mistakes by making rash decisions.
And dont dwell on losses or let them depress your mentality they are inevitable theres nothing we can do about it thats just part of it. I have losses just like everyone else in this business but I know from experience now that if I continue without changing what I do, the losses dont matter all that matters is if you have profit once its all said and done at the end of the week, month, year.
