Hello All,
Greetings!
As we know that the contest result for Dec 2013 is out, I would like to especially congratulate the winners, and say good luck to all the
rest of the contestants.
Today’s topic I wanted to discuss about is “Dilemma followed by Regrets – Any solutions?”
I am sure that all of you have experienced this situation one time or the other. Some of you may even have overcome it. But at the same time, there may be many out there who are still left out with nothing but to wonder about this situation.
Yes – this is one of those situations when you confront Dilemma first which is often followed by Regrets.
Typical situation:
You opened your trade with SL (Stop Loss) and TP (Take Profit). And now the market is moving FOR you. Let’s say that you are half way to your TP. (A substantial profit)
Dilemma:
You are tempted to take the profit but you also want to leave the trade on. You fear that the market may reverse back resulting wiping out all the gains made and even worst, perhaps stop you out of the market with big loss. Every time you look up the chart and the gained profits you ask – Should I adjust SL? Should I book the profit? Or should I leave it on?
Scenario 1 – You booked profit and realized that the market kept going towards your direction
Scenario 2 – You left your trade open and as you feared market reversed and resulted you a loss.
Familiar Situation???
So do we really have any solution for this?
Thanks to my mentors - below steps (A,B,C & D) are what I have been practicing and they've been working well for me. This is definitely
NOT – “My way or the highway!” kind of a solution. As I said, you may be among those who may have overcome this long ago… In the end you have to follow what works best for you.
A) Set number of take profit targets – 1st, 2nd or even 3rd.
B) Set your SL (value) for every trade to such, where you give away all your emotions with it. In other words, get rid of your emotions (Greed as well as Hope) with your SL. In a way you can say that you are paying that SL – amount to be emotion FREE.
C) That SL (value) is = to your first profit Target. [You may say that we cannot open two positions of the same pair or take half profit from our position, here in our Dukascopy contest; I agree with you. But besides, this practice is possible. And you can follow the similar strategy here as well.]
D) MOST importantly, when you give away all your EMOTION (both GREED & HOPE), make sure you bundle it up with the REGRETS as well. ASSUME you are PAYING YOUR STOP LOSS value for – THE PEACE OF MIND (EMOTIONLESS & OF COURSE REGRET-LESS!)
Good Luck Trading!
Anil.
Greetings!
As we know that the contest result for Dec 2013 is out, I would like to especially congratulate the winners, and say good luck to all the
rest of the contestants.
Today’s topic I wanted to discuss about is “Dilemma followed by Regrets – Any solutions?”
I am sure that all of you have experienced this situation one time or the other. Some of you may even have overcome it. But at the same time, there may be many out there who are still left out with nothing but to wonder about this situation.
Yes – this is one of those situations when you confront Dilemma first which is often followed by Regrets.
Typical situation:
You opened your trade with SL (Stop Loss) and TP (Take Profit). And now the market is moving FOR you. Let’s say that you are half way to your TP. (A substantial profit)
Dilemma:
You are tempted to take the profit but you also want to leave the trade on. You fear that the market may reverse back resulting wiping out all the gains made and even worst, perhaps stop you out of the market with big loss. Every time you look up the chart and the gained profits you ask – Should I adjust SL? Should I book the profit? Or should I leave it on?
Scenario 1 – You booked profit and realized that the market kept going towards your direction
Scenario 2 – You left your trade open and as you feared market reversed and resulted you a loss.
Familiar Situation???
So do we really have any solution for this?
Thanks to my mentors - below steps (A,B,C & D) are what I have been practicing and they've been working well for me. This is definitely
NOT – “My way or the highway!” kind of a solution. As I said, you may be among those who may have overcome this long ago… In the end you have to follow what works best for you.
A) Set number of take profit targets – 1st, 2nd or even 3rd.
B) Set your SL (value) for every trade to such, where you give away all your emotions with it. In other words, get rid of your emotions (Greed as well as Hope) with your SL. In a way you can say that you are paying that SL – amount to be emotion FREE.
C) That SL (value) is = to your first profit Target. [You may say that we cannot open two positions of the same pair or take half profit from our position, here in our Dukascopy contest; I agree with you. But besides, this practice is possible. And you can follow the similar strategy here as well.]
D) MOST importantly, when you give away all your EMOTION (both GREED & HOPE), make sure you bundle it up with the REGRETS as well. ASSUME you are PAYING YOUR STOP LOSS value for – THE PEACE OF MIND (EMOTIONLESS & OF COURSE REGRET-LESS!)
Good Luck Trading!
Anil.