A bomb happened once eevry few months
- Thread starter innovest_11
- Start date
what is the definition of a loser?
A bad trade is one where you are moving the stop away from your 1st place either mental or hard stop.
Averaging down is fine if that was your plan to begin with for example you planned to invest 400 shares in MSFT, 200 now and 200 more if it drops 2 points.
However, if you invested 400 shares with no plan, and the stock drops 2 points, and then you decide to buy more shares, you are adding to a loser.
Averaging down is fine if that was your plan to begin with for example you planned to invest 400 shares in MSFT, 200 now and 200 more if it drops 2 points.
However, if you invested 400 shares with no plan, and the stock drops 2 points, and then you decide to buy more shares, you are adding to a loser.
You can't.Quote from innovest_11:
Every few months, i will break one of my rule and got carry away and lose a big amount of money. I mean I'm human afterall, and i cannot automate this buying and selling, it is based on charts
How to prevent this problem from happening every months? I was happily building up my account, and once a while, it will be cut substantially, very demoralising for me
It's a black swan.
And, as such it's actually expected if you keep trading.
cold (captain srebrenica + general ljubljana), this is the funniest username you've come up with. Thanks for the laugh
You have developed a physiological habit of breaking your rules. Sometimes this is done to prove to yourself your rules are good.
You need to gain control of the habit. best way is to plan your rule break. Set your parameters to allow yourself to trade outside your rules once a month until you can remove the thrill of cheating on yourself and deal with it emotionally.
You need to gain control of the habit. best way is to plan your rule break. Set your parameters to allow yourself to trade outside your rules once a month until you can remove the thrill of cheating on yourself and deal with it emotionally.