Every time it is different, but in general I would say there are 5 type of trades:
1- Just nosedives and never goes into your favor. Straight down (up). The ones to avoid, which you want to get out of as quickly as possible. Will destroy your account really fast if you do not cut it.
Not much you can do about this type. Obviously you get stopped and that's it. I see people hold on and even congratulate themselves for it "expert educators" telling people to "let their losers recover", and brokers say that most clients do this. It is so stupid I won't talk about it. You get stopped, end of story.
Here are examples:
![USDCHF looking for violent reversal [12 hours - 2 days trade]](https://static.tradingview.com/static/images/svg/idea-image-placeholder.svg)
2- Baghodler favorite. Check Tesla and Robinhood bagholders for an example of this one. Slowly goes against you, and more, and more. Baggies absolutely love to hold onto those ones. "Oh well it is going to bounce eventually". Literally going against the trend. It is so stupid to anyone that understands a tiny bit...
Trends are awesome. Spot a nice diagonal trend, enter, trail your stop, stay in. move with the market. Markets do not trend that often but when they do it is easy money. Holding against that is emm well like stabbing a wound to make it go away.
Might be a good idea to cut your losses early. If it just slowly keeps going against you...
An example where it was slowly going up & I gave up but came back with a short idea later. Should have given up faster tbh:
And then there was a new opportunity:
3- The one that does not go anywhere. Just consolidates, or goes slightly in your favor/against you and then the other way.
Paul Tudor Jones has a rule "If it takes too long I get out". Might want to follow that one.
I guess you can take almost any Bitcoin trade as an example. Gosh this stupid thing is boring.
I cannot think of any trade that was not Bitcoin that was a number 3. It usually goes up or down.
4- The one that goes midly in your favor. They can either slowly go up (/down) or go back agaisnt you then double bottom and rip up.
Depends on the strategy, and you will be able to tell how to deal with those with experience normally.
It is complicated every case is different. No simple rule here. Can trail stop, move SL to breakeven and maybe re-enter later, or just stay in and wait and see (but if it takes too long thought...). Plenty of possibilities to do this.
This one is an example, not great:
This is a stinky one that goes way down, then up then down again.
5- The ripper. Goes strongly in your favor and keeps going. Never comes back into your risk area.
These are the kind of ones that make accounts grow and the one we are looking for. The other 4 types are irrelevant. They are just failed attempts to get these big winners.
This amazes me, but according to brokers, this is the one that traders get out of quickly -.-
And the disgusting ones (number 2) are the ones that people hold onto because "it is not falling too fast it will come back eventually".
Cannot help but want to "secure" your profit? Then simply move your stop loss to breakeven. If you have a really big winner, it should not go back against you the vast majority of the time.
Here is an example:
Here is another example:
And 1.5 month later it is still going down, stronger than ever (I should have stayed it, but at the same time beloved intelligent regulators won't let me):
1- Just nosedives and never goes into your favor. Straight down (up). The ones to avoid, which you want to get out of as quickly as possible. Will destroy your account really fast if you do not cut it.
Not much you can do about this type. Obviously you get stopped and that's it. I see people hold on and even congratulate themselves for it "expert educators" telling people to "let their losers recover", and brokers say that most clients do this. It is so stupid I won't talk about it. You get stopped, end of story.
Here are examples:
![USDCHF looking for violent reversal [12 hours - 2 days trade]](https://s3.tradingview.com/n/N8nfKDlB_big.png)
2- Baghodler favorite. Check Tesla and Robinhood bagholders for an example of this one. Slowly goes against you, and more, and more. Baggies absolutely love to hold onto those ones. "Oh well it is going to bounce eventually". Literally going against the trend. It is so stupid to anyone that understands a tiny bit...
Trends are awesome. Spot a nice diagonal trend, enter, trail your stop, stay in. move with the market. Markets do not trend that often but when they do it is easy money. Holding against that is emm well like stabbing a wound to make it go away.
Might be a good idea to cut your losses early. If it just slowly keeps going against you...
An example where it was slowly going up & I gave up but came back with a short idea later. Should have given up faster tbh:
And then there was a new opportunity:
3- The one that does not go anywhere. Just consolidates, or goes slightly in your favor/against you and then the other way.
Paul Tudor Jones has a rule "If it takes too long I get out". Might want to follow that one.
I guess you can take almost any Bitcoin trade as an example. Gosh this stupid thing is boring.
I cannot think of any trade that was not Bitcoin that was a number 3. It usually goes up or down.
4- The one that goes midly in your favor. They can either slowly go up (/down) or go back agaisnt you then double bottom and rip up.
Depends on the strategy, and you will be able to tell how to deal with those with experience normally.
It is complicated every case is different. No simple rule here. Can trail stop, move SL to breakeven and maybe re-enter later, or just stay in and wait and see (but if it takes too long thought...). Plenty of possibilities to do this.
This one is an example, not great:
This is a stinky one that goes way down, then up then down again.
5- The ripper. Goes strongly in your favor and keeps going. Never comes back into your risk area.
These are the kind of ones that make accounts grow and the one we are looking for. The other 4 types are irrelevant. They are just failed attempts to get these big winners.
This amazes me, but according to brokers, this is the one that traders get out of quickly -.-
And the disgusting ones (number 2) are the ones that people hold onto because "it is not falling too fast it will come back eventually".
Cannot help but want to "secure" your profit? Then simply move your stop loss to breakeven. If you have a really big winner, it should not go back against you the vast majority of the time.
Here is an example:
Here is another example:
And 1.5 month later it is still going down, stronger than ever (I should have stayed it, but at the same time beloved intelligent regulators won't let me):
