Would you stick to your trade even when a loss seems imminent?

[d08]

The Pro has developed a discipline hack, he doesn't even look at the trading screen during the day.

For equities traders at least, looking at the screen is often necessary during volatility as there's often unforeseen problems. Same reason firms use automation for every process but still monitor everything. I've done days where I don't look at anything but there's also a lot of instances where something somewhere fails and I need to attend.

 

[systematictrader]

To me personally, trades have implied value as well, meaning: if this low or this high breaks (or fails) the trend in a higher scale is confirmed (if the structure on the lower scale is compatible), so the normal size makes no sense because you want to acquire a big positions as soon as possible to bank on the bigger gyration that is unfolding. Yes, discretionary.

You being discretionary, it makes sense, and i assume your a swing trader also

 

[traderjakelong]

In a good system, the stop is the optimal place to take the loss. Beyond the stop your system should lose more money than it can generate in the few trades that still get profitable.

A trade needs room to develop, so taking a loss too early to avoid a potentially bigger loss, is impacting performance in a negative way.

The place of a stop is where the probability of losing money is bigger than the probability of making a profit.

I also follow the same strategy. If I feel like chances of loss are high, I just stop there because I always look forward to saving my money rather than making more money.

 

[murray t turtle]

lolo.o why are you picking on FAS and FAZ,, cant the move still go your way on fed announcement, they also got liquid options, cant restructure position to limit loss and or capture a big move if correct? weekly OTM verticals for example?

%%
I picked on them because i wanted to use a concrete example, so to speak........

 

[currencylover]

When it’s visible that a loss seems imminent, then it’s better to stop there.

 

[Millionaire]

When it’s visible that a loss seems imminent, then it’s better to stop there.

Except when you do that the market sometimes turns around and blasts off the way you originally planned for and becomes a massive winner.

Instead of having a big winning profit (had you stuck to the original stop) you have a losing trade in your account instead.

 

[navyelite]

I believe sticking to the plan is best. I would recommend you to control your emotions, trust your plan and go with it. If you lose, find the mistakes and learn from them.

 

[pureequity964]

No, I would try my best to mitigate the loss which is imminent. I would try to sell the stock at less profit or something but I will never let my hard earned money ruin.

 

[murray t turtle]

I believe sticking to the plan is best. I would recommend you to control your emotions, trust your plan and go with it. If you lose, find the mistakes and learn from them.

%%
GOOD;
especially since a battle tested plan tends to be much better than instant or shallow trade moves...................................................................................Wisdom is profitable to direct.

 

[deaddog]

say you enter a trade given by a signal/setup and have your profit and stop orders attached, then price action begins to go against you and you believe you are likely to be stopped out of the trade. Would you close your trade or wait for it to hit your stop?

I understand that manually closing a potentially losing trade makes your stop redundant, but sometimes when something unexpected happens it feels like additional loss on the trade could be prevented.

When something unexpected happens I'd take the loss.

You set a stop loss to keep your losses small. A smaller loss than planned is not going to hurt you.