The mental discipline.
Rule:
Don’t get personal, do not get emotionally involved.
Don’t you EVER double up in a losing steak to hang tough against the broker, the market.
Double up is equal to extending stop-losses, big mistake.
A Scenario play:
Said, your risk is 5pips, your break-even is then on the next + 5pips, your real unrealised gain start on 7th pips, 8pips, 9pips...so forth, your 1st Risk/Reward falls on 12th pips is 1R.
Your platform shows you are winning in the game starting from 1st pip, actually you are not winning, you are losing until break-even you start winning. Why? showing your winning, your in the green so you are happy and delighted. You ride on it but did not move stop - loss, decided not to could be,
reason: you are break-even or might be stop out, not enough room to move a reasonable stop-loss. One of those reasons not to move stop-loss, very reasonable. Nothing wrong, it's part of your trading plan.
What you probably din realised or you had but no action taken, that is, your risk not covered. Your risk probably at 5 pips and now your running gain shows you 3 pips, thats a green, so you decided to hold the gains, at this point you are in the green but actually you are in the red, why? Your risk defines it, not the numbers broker is showing you.
Until you exercise to take in the money before break-even between 2pips to 7pips, your risk overtime is larger, as you would be trading over and over the same style probably in a larger capital at risk. Not to advocate this kinda short-term profits but giving an idea kinda risk overtime equation, the bottomline being aware as your exposure to risk gets larger each time sooner or later bigger than profits.
This are one of those rules regardless which market your investing in, whether is a trading session intra-day or a swing trading in any form of timeframe.
Rule:
Don’t get personal, do not get emotionally involved.
Don’t you EVER double up in a losing steak to hang tough against the broker, the market.
Double up is equal to extending stop-losses, big mistake.
A Scenario play:
Said, your risk is 5pips, your break-even is then on the next + 5pips, your real unrealised gain start on 7th pips, 8pips, 9pips...so forth, your 1st Risk/Reward falls on 12th pips is 1R.
Your platform shows you are winning in the game starting from 1st pip, actually you are not winning, you are losing until break-even you start winning. Why? showing your winning, your in the green so you are happy and delighted. You ride on it but did not move stop - loss, decided not to could be,
reason: you are break-even or might be stop out, not enough room to move a reasonable stop-loss. One of those reasons not to move stop-loss, very reasonable. Nothing wrong, it's part of your trading plan.
What you probably din realised or you had but no action taken, that is, your risk not covered. Your risk probably at 5 pips and now your running gain shows you 3 pips, thats a green, so you decided to hold the gains, at this point you are in the green but actually you are in the red, why? Your risk defines it, not the numbers broker is showing you.
Until you exercise to take in the money before break-even between 2pips to 7pips, your risk overtime is larger, as you would be trading over and over the same style probably in a larger capital at risk. Not to advocate this kinda short-term profits but giving an idea kinda risk overtime equation, the bottomline being aware as your exposure to risk gets larger each time sooner or later bigger than profits.
This are one of those rules regardless which market your investing in, whether is a trading session intra-day or a swing trading in any form of timeframe.