I'm going to spell it out, in what I noticed in my trades going bad.. 1. I failed to plan ...I bought in and had no exit plan so after the thrill ride it tanked 2. I was trading on emotions.. with the market it was going up and when I bought in it tanked 3. I sold to early...here I was in the money with a half point gain and sold when 1 hr later it went up 2 full points.. 4. I bought in thinking it was the low for the day... only it went lower 5. my big problem here...I'm up in the money some TimeS and don't sell then it tanks again 6. fail to take a loss...I'm down a 1/4 point and a feeling in my gut says sell!..but I don't and hang on and loose out big with a margin call the next day enough pain for now..... but I'm still hanging in there
If you were to actually do a statistical study on your "gut feelings" you would most likely never ever want to follow it again. The problem with gut feelings is that for some reason you only remember when your gut was RIGHT, and soon forget when it is wrong.
Simple, you were NOT trading. You were playing a video game. You already knew that you have no plans. I may add you have no strategy either. Nor do you know what tactical responses you should have under every situation. (Tips: There are only 3 situations -- Up, Down and Sideways.) If you cannot map out the above in detail, the purpose of your existence is just providing profit to people like me.
Unless you are using a pure "Black Box" system, the mistakes you made are human. I make them as well. Any assclown that tells you he does not is the same guy saying he makes a lot of money "Day Trading". Just remember all those points next time your in a position. It may or may not help, because being in "the moment" is a lot different than "hind sight".
im confused about a "exit plan". I understand a plan to enter a trade. But to truly have an "Exit" plan as many speak of? What if your playing multiple positions, arbitraging, hedging? All require a specific exit plan? The only exit plan i can think of is 'cut your losses" faster than taking your profits." But that is easy enough to say, harder to follow. Unless you have a conviction that you may know where the market is heading, then taking "heat" may be needed. Yet, when is the "Exit" plan in taking heat time to signal an out? That is what makes a true trader. The ability to understand how, he/she trades, with out the rest of the 1000000 Yahoos understanding. "my amazing system, you too can make millions". works well in TV info commercials. Most traders I know, can't really explain in detail as to why they are successful. "The just are". Sure, you might find certain traits in all successful traders. But does that really give you a sense of foundation across the board. A set of rules that are universal. I say not. As if in poker you have an entry plan and a exit plan. You deal with odds and you deal with the cards that are given. But do you fold if you have a bad hand? What is your exit plan? The only plan you have is "what you can risk" and afford to loose.
you got to put an exit plan in place for all your trades reguardless of what type of trade it is... too me any profit is better then no profit! I let greed run on my trades and they tank I refuse to sell thinking it will go higher and it tanks before I knew it! you got to have a plan to exit I had to learn this the hard way like thousands lost! if you could just be one with your trades no emotion no feelings like just making coffee ..you could master trading...
LOL, 'ONE WITH YOUR TRADES". I ve been trading for about 7 years now. I switched my style to more "Long term swings". I do have "Exit" ideas. But how many times have I changed those EXIT ideas based on my indicators, the market, XYZ changing. There are no Definitive "EXIT" plans as a whole. There are no universal exit plans. Anyone can say, 'HAVE AN EXIT PLAN." Hell, I can say the sky is blue. My point is, the word "EXIT" is arbitrary and has no true value as a "Plan". an "EXIT" opportunity is a living breathing all ways changing dynamic, much as the market itself.
What you say is true..however everyone is diffient.. no 2 traders are alike.. we all have our reasons to buy and sell and that's what makes markets...when I decide to sell to a buyer I'm taking a chance that it might go higher and lose out.. he's betting it will go higher maybe not today but in the future..again that's what makes markets..you have to decide what works for you.. I'm finding this out the hard way right now I think you have to learn with real money and real losses and real pain to get it right your way! that's why when you ask a pro and he can't really tell you why he wins he just learn the hard way himself...
Definitely you need an exit plan. A mentally or fixed exit point is your hard (catastrophic) stop when you are proven wrong immediately after you enter. An exit point is a "time stop" when things going nowhere after you enter proving your timing was wrong. An exit point is when you reach your target(s) which you hopefully have. Exit points show you how good your systems are. Exit points are there to take out some profits and decrease risk partly. An exit point is when you switch off your computer after you have accomplished your goal. An exit point is when you stop after recognizing thats not your day.