CRInvestor

LTC - When a setup fails ego should lose to career longevity

BITFINEX:LTCUSD   Litecoin / Dollar
Hello all,
Today's post is more about professionalism in the face of failure then reporting any new setups. Recently, I had started to make the case for the Alt coins and their long anticipated catch-up rally to BTC . While I still do feel that scenario has a high likelihood of playing out, this production is all about LTC's recent failure and how I acted in the face of the failure.
I personally am a big fan of the 'double bottom' price pattern (W's) to setup up long trades and whenever I see a double bottom within a double bottom I get really excited. So to that end, I bought the double bottom within the double bottom on LTC             (indicated level on chart above) with the anticipation that LTC             might do a similar bullish harmonic price pattern move that BTC did and/or at least test the highs at/near $14.20. I was willing to risk to the bottom of the double bottom (10.06). This represented about $1.00 of risk for $3.00 potential reward. Put it all together and I felt the setup was within my plan and I took it.
As I have repeatedly stated in the past, I have yet to meet a trader who was/is 100% accurate and I simply do not believe such a thing exists. Indeed, as a prop crude oil             trader, many of my peers would shoot for 60% accuracy. The key here is, when they were right they got paid 2 to 3 times how much they lost when they were wrong.
So this brings us back to my LTC             long setup. It indeed failed and now managing the loss is really a testament to my professionalism and how it's handled is a direct proxy on my career longevity. As a broker I would watch people sit on losing positions and literally let months/years go by enduring the loss. Not only does this do great psychological harm, but it also ties up capital which may have found new (maybe even better) uses. I shall not take that road. I am more than comfortable admitting the setup failed, exiting at my stop level and booking the small loss. I have done exactly that and shall now move on to new ideas.

Cheers all and hope it helps

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Brilliant exit, however. Can't feel as bad now!
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CRInvestor PRO JesseGreen
2 years ago
I could write a course on how to be a good loser, eh...lol....ya when you hit the play button it sure looks like a good idea to get out.
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