Agreed buddy! Stoploss is the best way to limit risk and protect a portion of existing profits in a trading position.
like this lol it is all about probability so once you have a stop at a place where you are comfortable and you know you have backtested your strategy to make sure it works you should be fine.
Yea agreed, having stop loss allow you to potentially minimize the losses rather than full out blown account when not accounting the SL
Agreed buddy! A stop loss prevents a major drawdown in your trading account if the market moves against your position.
At some point every trader has been through it, call it revenge trading. It has a lot to do with emotions and psychology. Your ego and not wanting to have a red day in 15 days is what wipes out the green every trader has been through. We all love to have our journal look all green, but its not practical, there's a saying cut your losses short and let your winners run. you either walk away with 100$ loss or wait for your stops to do it for you, have a solid trade plan on your losses and follow it.
%% Good, scale out + scale in. THAT also helps put ego in proper place. Also big help , looking @ a loss as business expense\NO such thing as a business without expenses. But plenty of businesses have gone broke with out of control expenses\losses. Hope this helps/it helps me...............................................................................
On an additional note, with any system, knowing when to stop trading is so important. It is pretty easy to set an achievable goal and stop, the harder is: When to stop when you are negative. When to stop when you do not have an upside goal. Both are doable but if you do not define the criteria, then the system is incomplete.
"How to be okay with taking a Stop Loss?" I think very best is developing a trading plan where you consistently profiting nearly everyday, after awhile you don't notice losses so much. But what is funny, in scalping I could have 70 scalps, don't remember any of the profitable trades but remember the 4 losses. You trade long enough, you wake up thinking it be a no loss day.
I don't really pay any attention to the losses I planned for. The ones I remember are the ones that I should have taken earlier. I look at the account balance at the end of the week and review trades to make sure I followed my plan.