Refering to this trade (also linked below the post)
I exited the trade when the GDP number came out. The probability was against me when that number came out so I cut my loss immediately. I risked 0.8% for this trade and ended losing approx 0.4%.
The takeaways that I would like my readers to get from this post are as follows :
1) Trading isn't about being right, it is about managing risk when you are wrong
2) Don't over-leverage
3) Apply discretion around a very well thought out trading plan/strategy (i.e the GDP number came out and I did not see the value to stay in the trade as the probability was severely against me)
4) It is okay to take a loss
5) Be wary of risk-events even if you don't include fundamental analysis in your trading methodolgies
I exited the trade when the GDP number came out. The probability was against me when that number came out so I cut my loss immediately. I risked 0.8% for this trade and ended losing approx 0.4%.
The takeaways that I would like my readers to get from this post are as follows :
1) Trading isn't about being right, it is about managing risk when you are wrong
2) Don't over-leverage
3) Apply discretion around a very well thought out trading plan/strategy (i.e the GDP number came out and I did not see the value to stay in the trade as the probability was severely against me)
4) It is okay to take a loss
5) Be wary of risk-events even if you don't include fundamental analysis in your trading methodolgies
