NEIRO | Why You Shouldn’t Short Again After Your SL Hits

Hello!! Futures traders, let’s talk about a common mistake that costs many their hard-earned capital opening a short position again after your Stop Loss (SL) gets hit.

NEIRO has shown us just how punishing this can be. 📉

Imagine you set a short position on NEIRO, confident the market will drop. But instead, the price pumps, hitting your SL and causing you a significant loss. What many traders do next is a fatal mistake they open another short position right away, thinking the market must reverse. But here’s the harsh truth: when you do that, the market could be targeting you!

Why You Shouldn’t Open a Short Again:

1. Revenge Trading

After a big loss, emotions can take over, and traders may try to "win back" their money by entering another short. This is called revenge trading, and it often leads to even more losses.

2. Market Momentum

NEIRO, like many volatile assets, often moves in strong trends. If the price is pumping and your SL was hit, the trend is likely still going up. Entering another short is betting against that momentum, which increases your chances of being liquidated again.

3. You’re Not in Control

When you lose a lot, it can cloud your judgment. You might not be making decisions based on logic but on frustration. And when you open another trade out of frustration, the market often takes advantage of that.

What Should You Do Instead?

Take a Break

If your SL hits, step away from the screen. Analyze the market calmly and let the emotions cool down before considering your next move.

Respect the Trend

If the market is trending upward, trying to short can be dangerous. Wait for clear signals of a reversal before jumping in again.

Reassess Risk Management

Losing big in a trade is a sign that risk management may need tightening. Review your position sizing and leverage to avoid future big losses.