I am sure YOU know by now that Fear and Greed are emotions that need to be controlled in your trading….
But there is something even WORSE than this…...something that is a SURE recipe for disaster in your trading account….
And at some point, all of us have done it…..
It's Revenge Trading…….
….which is basically the need to be RIGHT regardless of what the market is DOING…..
…..or wanting and needing to GET BACK AT the Market….
Let me tell you…..that this type of behavior…..if YOU do not put a LID ON IT very early in your trading…..it can consume you and Destroy your Trading account.
Revenge has NO PLACE in trading……
You must recognize that the MARKET is always RIGHT…..and our job as traders is to be in tune with the market…..regardless of what our analysis tells us……
Let me give you an example of what I mean….
Let's say a newbie trader…..we will call him Joe…is analyzing a USDJPY chart and he sees price approaching a Strong Support Area that he has been anticipating for several days…..
Joe starts to get excited….cuz he has done all his analysis and everything is telling him to BUY at that support level……
As price enters support, Joe place a limit order to buy 2 lots….and quickly gets filled. Joe is a cautious trader so he enters a stop loss 50 pips below his entry price…..
Now price has fallen thru this support level with HIGH MOMENTUM...and Joe gets Stopped out…..
Joe's a bit ticked off at this but he is still convinced that his original analysis is correct, so Joe places a new limit order to buy….but this time doubles down, and goes with 4 lots…...
At this point alot of NEW sell orders are coming into the market,...as the Breakout traders are adding fuel to the fire…..and prices continue to fall……
And again shortly afterwards…...Joe is stopped out again…...but this for twice the loss….since he doubled his position size….
Now Joe is just PISSED….because this was NOT supposed to happen…….
Now prices start to pause and retrace to the upside and bit…...and Joe SAYS to himself…...YEP, there's my confirmation…...I am going to Freakin get in HERE now…….He pulls the trigger and gets his buy order filled for another 4 lots…..
After what was just a minor upside retracement…..price continues its downward movement…..and for a third time Joe gets stopped out….
Stunned by this series of events……...Joe yells out……..…..
What the F*CK is going on?
Well Joe,………….What's going on is that you are REVENGE Trading and don't even know it……
Lesson is………
Don't be a SCHMOE……...Don't trade like JOE...
|
|
Tidak ada komentar:
Posting Komentar