Hit It Out!! Damn It!!

You might have the best trading plan out there or the best trading setups that you trade off. But if you don’t HIT OUT your losers once they they hit their stops. It could be game over for you as a trader sooner than you think.

Taking a loss in a trade is the hardest thing for a new trader, as he would have read through many books and would have thought he is ready to Rock N Roll and ready to make a killing in the markets. He might run on a few  hot streaks of what is called a beginner’s luck but when the luck starts to run out, that is when the true mettle of the trader starts reflecting i.e. when he has losses does he hit out and take a small loss or does he stay in and let the trade go against him and wait and wait hoping for the trade to go in the direction he wanted.

As a trader, the first RULE for trading is NEVER LOSE, but when you lose, DON’T LOSE A LOT.

Survival is key in this world of trading, there would be times when markets are just not conducive for trading. Those are the times when a trader needs to sit out and not go all guns blazing thinking he will succeed in it. Different strategies work in different market conditions. The idea is to identify what strategy  you have and what market conditions you want to run it on.

If the price is at your exit price, HIT IT OUT, don’t wait and say to yourself, this times it’s going to be different.

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dchsn6

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