Two Gurus Two Mistakes Massive Pain

Two Gurus Two Mistakes Massive Pain

I made this big mistake on Friday. Then another guru I was talking to made the same mistake today.

Both mistakes equaled massive pain.

So what did we do?

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We were up big on trades and then let it turn against us for a massive loss.

Have you ever done this?

Some lessons and how to do better next time.

Traders often hold on to winning trades too long for several reasons:

  • Greed: When traders see a profitable trade, they might become greedy and hold on, hoping for even larger profits. This desire for more can prevent them from closing the trade at a sensible profit point.
  • Overconfidence: Success in a trade can lead to overconfidence. Traders might believe that the trade will continue to perform well indefinitely, causing them to ignore signs that it’s time to exit.
  • Lack of a Profit-Taking Strategy: Without a clear strategy for taking profits, traders may not know when to close a trade. This can result in them holding on too long, hoping for additional gains that never materialize.
  • Ignoring Market Signals: Sometimes, traders might ignore or misinterpret market signals indicating that it’s time to exit a trade. They might hold onto the trade despite signs of a market reversal, leading to substantial losses.

To avoid holding onto trades that turn massive profits into massive losses, consider these strategies:

  1. Set Profit Targets: Establish clear profit targets before entering a trade. Once these targets are reached, close the trade to secure your gains. Using limit orders can help automate this process.

To Your Trading Success,

Casey Stubbs