$WIF If you find yourself sunk in the loss, here are some things to help you. I don't promise to make your losses back, and I certainly cannot promise that I will always be right, but there are a few fundamentals in the world of trading that we should never forget to improve our odds in this cut-throat (literally) community.
1. Set clear goals
Ideally before you take a trade or after you've taken one, set your goals. Where do you want to place your stop loss most importantly. Take profits are important but not as much for active traders and if you are confident in your trade. Don't let your losses drain out in hopes of a rebound. Yes they do happen but how often? And could you have generated a better return with liquid tradable assets instead of watching them locked up and burnt?
2. Test your theory
And no I don't mean backtesting although that can be a useful tool in many technical based strategies. I mean what is your confluence for trading? I'm an aspiring macro-economist and a strong believer in macro factors that impact the markets. Look at news, follow some live reporting accounts like financial juice on twitter. Be informed. Challenge your confluences. If it's technical, pick out opposing patterns on a larger time frame, what are some key price levels that may interrupt your plan? If it's fundamental, how significant is the news event? Has it been overly priced in? If both, do the same things. TEAR your strategy apart and if the odds are in your favour, be blessed.
3. Discipline
Learn to sit on your hands. Don't move your stop loss for no good reason. Before you modify your trading position, run your new idea through the same process as before. Nothing can save you from yourself. Don't take trades you're not confident in and gamble your hard earned clams away. No confidence, no trade. You lose no money in waiting for an opportunity. This is where most people fail even if they read this. Put in the WORK. DYOR as always.
#tradesafe