I did it!

Posted by Deb | Uncategorized | Tuesday 21 September 2010 5:21 pm

I did it! I quit a losing position of one contract with a loss of $50, without moving the stop-loss or adding more contracts for “averaging out” or any other such tricks!

Those who are not following my blog for long may not know, but I have been struggling with my bad habit of moving the stop-loss further away when the position was losing, and also the habit of adding new contracts to losing positions without enough planning. Well, today I let the position lose on the original stop-loss point. Shortly after I had tried going into another position but then saw the market was still going against me so I quit immediately. The final position was a good one, so that my bottom line was of +$37.5. Since the whole process used about 5 contracts (I lost count of the contracts somewhere along this process), the net profit had this been live trading was close to zero, but I don’t mind. The important thing for me today was my acquiring again this ability to let a bad position go, quitting it when the loss is small. Moving the stop-loss or adding more positions can often give the position a new chance and end in a profit, but as I had learnt in the hard way, when it does not end in profit, it ends with a very bad loss which can erase the profit of many days.

I feel now more prepared to go back to live trading. I hope to do that soon, acharey hachagim as we say in Hebrew, after the holidays. I hope to be back trading in the last week of September. Good luck to me!

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