Nothing new in this thread. Just thinking out loud. What has served me best is accepting a loss and moving on. I keep walking up to the plate and don't leave the bat on my shoulder. I keep swinging. It's helped me a bunch. Don't leave the bat on your shoulder, Keep swinging.
Obvious; yes, but also significant. Many don't know -- or forgot -- but Babe Ruth also held the record for strike-outs, a record which lasted some 30 years.
Good Evening Handle123, This is the best simplest comment I read on ET in the past 6 months. I honestly do not care about losses anymore. Thank you,
Yes. Correct. Position sizing is key of course. If you're trading small, it's easy to take a small loss and you consider it the cost of doing business. Which is what it really is. You know your next big winner is just around the corner and you also know that it's key to keep losses small such that your winners ain't just used to pay off your losses. It's the mother of all losses that's hard to take. Often seen in high win rate strategies which can work well for quite some time. Then one day you'll average down one time too much and you just let it go because the loss would be too hard to take. You pray to God and maybe he'll answer your prayers this one time. Just let me off the hook this one time, God, and I'll NEVER do it again. Then you're back at it again next week, but this time your prayers won't be heard and the account's gone.
So true. That is my fear of averaging down in day trading. Being at it since 2013, in options. On that side of the trading business, we call Mother swan, those black color type. Been there a couple of times and that is why I am now always long, buying lottery tickets, do not write anymore.