I know its a noob question, but when I got stopped out at the low, I am so mad and sad. Do pro traders still feel that way? Now I have bad habits when I got stopped out and price dont fall I go back in immediately, or I chase a much higher price. And when I am wrong again, I got so frustrated. How do you traders feel when you got stopped at the low, how you control your emotion and do tend to go back in? Thanks!!
After entry, I frequently experience the following scenarios: -Price stops out my position by a tick, and then shoots to the target without offering a valid reentry. (frustrating) -Price hovers a tick from my stop level for several minutes before finally moving to target. (relief/euphoria) -Price misses my target by a tick before reversing to stop me out. (frustrating) -Price hits my target to the exact tick before reversing to the stop level. (relief/euphoria) It's trading. No matter how good your plan or discipline is, you're gonna experience many occurrences which will test your emotions. If your trade plan doesn't fit your personality, those tests are going to overwhelm you in due time, and you'll deviate from your plan to enter randomly. If you frequently give in to your impulses, you'll build a habit of impulsive entries. Of course you will win some battles here and there, but over time you'll most likely destroy your discipline, confidence, and account. Best to let go of the frustrations and stick to your plan (assuming you have one that actually works).
When bottom fishing I use trailing entries with higher weightings at lower prices. When I'm stopped out I don't get mad, it just means I'm wrong. It sucks but you have to get used to it.
I think I created this bad habit because I am too afraid of missing a "homerun" , which did happen many times before. I know it's a bad thing to do, so I try not to do that anymore, I have rule to not let myself enter back into a trade right after stopped out, but when market did false break and ran the other way, It feels so bad, and I want to chase it and cant think straight, Just wonder how I can rewire my mind.
You can do a few things which will help: 1. Wait for confirmation 2. Keep your stop at a level which keeps risk contained 3. Allow for a 2nd entry following same above rules if you feel strongly about the signal or give some room for these shake downs. If you follow a fixed set of rules rigidly and your signals themselves have positive expectancy, that's mostly it.
Something I've been trying to avoid the "spike"... Not the holy grail or anything, but has been helping. Wait for the candle (whatever time frame you trade) to print beyond your stop level, not on the touch, close trade manually. Placing the stop right after you enter is like an invitation to come get it. Also do not place stops inside the days current range, make it a new high or low.
"If you frequently give in to your impulses, you'll build a habit of impulsive entries." This is exactly what I am experiencing right now, can't get rid of the bad habits, specially in the mental part, just really frustrated to see price hit my stop to the last tick and I did't get back because I made my plan not to get back, but price would start reversing. It just stuck in my head every time my stop is hitted, and I want to get back in everytime. Your thought on how to change my own thinking?
This is what I been working on for my second entry after stopped out, so after my stop is hit, I waited to see good close above a S/R where I got stopped out, then I would go back in, I guess because I been 1 mintutes for this, often I got stop out for second time, so I hesitated to do that now, but the time I didnt got back in, market would completely reverse. Sometime I just think the market purposely play with me, now I could get rid of this thinking in my mind every time I got stopped out.