I came up with an entry plan.
I came up with a stop loss.
I came up with a target price.
My entry was matched.
My target price was hit at the end of the day.
I lost money.
Why??
I was too kiasu that I moved my SL to a tighter margin too early, a SL that's lower than the initial plan, but not a level that will make me break even.
Lesson learnt? Don't move your SL unless it's to break even level (protect profit), or to put a trailing stop. What good it has to change a SL from 50pips to 30pips? If I could afford 50pips, why reduce? If I think 50pips was a reasonable margin, why change?
It reads, fear.
~~
Ripple
ReplyDeletei had the same dilemma early this month, that is the time while i try to trade in smaller timeframe, sticking myself to the screen.
i do not compromise my SL, instead, when mkt moves in favour like 20 pips, i move SL to entry.
may be i was dis-hearted with too many losses past weeks... :p however, it is good to know that both of us have come to aware that we need to review our trades, and make a decision whether our trading plans works best for us, that the SL and TG suitable for us, for the market, and find ourselves in our trades.
The best is coming, i hope you grab the best market opportunity! :)
-Ayumi-
you should read me last post - how do we over come this problem?
ReplyDeleteJeff again (aka Denarii)
ReplyDeletehttp://trader-denarii.blogspot.com/
Hi Ayumi, yes indeed. The fear of losses played a big part here... Come to think of it, why reduce my SL so early if i already set an initial SL? Did my risk tolerance change in that short time?
ReplyDelete:) yea, do wait for the better opportunity!
All the best.
Also, thanks Jeff for your recommendation. Wow you're a tick chart trader!
ReplyDelete