So often, a very good trade is marred by a less than perfect execution .
Eager to get into a trade, a trader might throw caution to the wind,
and immediately take the price that a savvy market make might want them to have.
Once that is done, then the entire trade is "immediately compromised",and you are put on the "defensive" as a trader.
If that blunder occurs, a trader then must then either add to position, and by doing so in some cases increasing risk substantially
or sell out at a loss, as the market more often than not immediately begins to work against them
The best traders out there define risk by "always" letting the market come to them, and do so by entering "Limit"GTC orders
waiting patiently,often time for days, then buying when many are selling, and selling near price peaks
as public recognition of "the story" becomes well known.
Excellent traders do their homework and study the issue they wish to buy,
They know it like the back of their hand.
Having bought at the right time
,then a trader must decide when might be the optimum place to sell, or exit a particular trade
hopefully with a profit, but often times with a "breakeven" or often at a loss, because of poor order placement
The point of this discussion is to illuminate just how hard it really is for a trader
who even having done their homework now must,complete both sides for a successful trade.
Traders don't talk about this usually.
This gets swept under the rug of,.. "there will always be losses"
My point is to minimize them..
So next time you are "beside yourself" to get into a trade, think twice about it.
I have pulled up a random chart here of Bank Of America ( BAC)
See if you can define where a proper "buy and sell" point might be,on this chart.
Can you see it ..?
Trading is an extremely difficult occupation to have.
Just being honest here.
Make yourself a winner by knowing the shot
and by doing the trade " the right way" the first time.
And never look back. We all do it, don't we ..?
Move forward instead,
Your bank account will be glad that you did.
THE_UNWIND
12/12/19
NEW YOUK
Eager to get into a trade, a trader might throw caution to the wind,
and immediately take the price that a savvy market make might want them to have.
Once that is done, then the entire trade is "immediately compromised",and you are put on the "defensive" as a trader.
If that blunder occurs, a trader then must then either add to position, and by doing so in some cases increasing risk substantially
or sell out at a loss, as the market more often than not immediately begins to work against them
The best traders out there define risk by "always" letting the market come to them, and do so by entering "Limit"GTC orders
waiting patiently,often time for days, then buying when many are selling, and selling near price peaks
as public recognition of "the story" becomes well known.
Excellent traders do their homework and study the issue they wish to buy,
They know it like the back of their hand.
Having bought at the right time
,then a trader must decide when might be the optimum place to sell, or exit a particular trade
hopefully with a profit, but often times with a "breakeven" or often at a loss, because of poor order placement
The point of this discussion is to illuminate just how hard it really is for a trader
who even having done their homework now must,complete both sides for a successful trade.
Traders don't talk about this usually.
This gets swept under the rug of,.. "there will always be losses"
My point is to minimize them..
So next time you are "beside yourself" to get into a trade, think twice about it.
I have pulled up a random chart here of Bank Of America ( BAC)
See if you can define where a proper "buy and sell" point might be,on this chart.
Can you see it ..?
Trading is an extremely difficult occupation to have.
Just being honest here.
Make yourself a winner by knowing the shot
and by doing the trade " the right way" the first time.
And never look back. We all do it, don't we ..?
Move forward instead,
Your bank account will be glad that you did.
THE_UNWIND
12/12/19
NEW YOUK