I'm thinking about putting more importance on hard stops. If I have strictly defined stops I will gain one psychological advantage. I will gain confidence in myself in trading. It's like that for some people you know you can count on that they will do as they said, but for some you don't. They sometimes don't deliver as promised, so in advance you can't count on them. So I'm thinking if I have habit of hard, totally predefined stops I will gain indirectly thro time confidence in myself that I'm the person that go out on s stop no matter what.
Tactically it's good in some situations to give position some little more room, because you see that price will probably revert. But than I always do that. From situation to situation I judge subjectively what's the best price to get out on a stop while I'm in the trade. With that in the long run I lose psychological advantage of trusting myself in every situation.
If I don't have predefined stop maybe deep inside me I don't know will I ever get out of a loosing trade. Or I will stay in until got totally wiped out. Consciously you know you will get out, but unconsciously you are afraid of yourself and your reactions, or lack of them. That fear is not so illogical as I had experience of several situations where with moving stops and averaging down I made catastrophic damage to my accounts p&l. In that way I made damage to my confidence also. So now I got to rebuild it. It's not just decision. Confidence can only be rebuild by observing right actions. So this is a way in which I get to trust "trader me" that he won't get a sleep by the wheel and drive us both to financial abyss.
Maybe through time and trust in myself, which is totally unconscious category, I will be more open to trades that I'm now not comfortable enough to take. Maybe I will not need comfort, but just take the trade and know that I can only lose amount predefined by stop. Averaging down and changing stops could with that be eliminated.
Why I change stops or average? Mostly it's done in trades that are counting on some kind of imminent reversal. But those trades are not so great in the first place to take. They are the one in which bottom or top is picked and that is losers game. The problem is that they are for me the most comfortable. So if I develop my hard stop discipline. Than trust it by repetition through time, I will enter other "not comfortable" trades. Trades that I want to enter and see them but they definitely don't feel good to risk in them.
So intention is to get comfortable taking stops and with it get relaxed in my trading. You can't be good in anything if you are in convulsion and not relaxed. Main thing for being relaxed is being confident in the first place. With being more relaxed you get more success, with more success there is more confidence. So positive reaffirming circle is closed.
Tactically it's good in some situations to give position some little more room, because you see that price will probably revert. But than I always do that. From situation to situation I judge subjectively what's the best price to get out on a stop while I'm in the trade. With that in the long run I lose psychological advantage of trusting myself in every situation.
If I don't have predefined stop maybe deep inside me I don't know will I ever get out of a loosing trade. Or I will stay in until got totally wiped out. Consciously you know you will get out, but unconsciously you are afraid of yourself and your reactions, or lack of them. That fear is not so illogical as I had experience of several situations where with moving stops and averaging down I made catastrophic damage to my accounts p&l. In that way I made damage to my confidence also. So now I got to rebuild it. It's not just decision. Confidence can only be rebuild by observing right actions. So this is a way in which I get to trust "trader me" that he won't get a sleep by the wheel and drive us both to financial abyss.
Maybe through time and trust in myself, which is totally unconscious category, I will be more open to trades that I'm now not comfortable enough to take. Maybe I will not need comfort, but just take the trade and know that I can only lose amount predefined by stop. Averaging down and changing stops could with that be eliminated.
Why I change stops or average? Mostly it's done in trades that are counting on some kind of imminent reversal. But those trades are not so great in the first place to take. They are the one in which bottom or top is picked and that is losers game. The problem is that they are for me the most comfortable. So if I develop my hard stop discipline. Than trust it by repetition through time, I will enter other "not comfortable" trades. Trades that I want to enter and see them but they definitely don't feel good to risk in them.
So intention is to get comfortable taking stops and with it get relaxed in my trading. You can't be good in anything if you are in convulsion and not relaxed. Main thing for being relaxed is being confident in the first place. With being more relaxed you get more success, with more success there is more confidence. So positive reaffirming circle is closed.
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