if you can't take a small loss, you will be forced to take a big one
Traders what do you think about this statement? Been trading for 2 years now and i realized it's so true that cutting losses early is better. When i began trading, i always held on to losses emotionally till they grew and i still had to accept the big loss in the end. Please what is your experience? have you had instances where you refused to take a small loss & eventually had to take a bigger one?
anyone who has been trading the same strategy consistently for long enough will know when something is wrong with a newly opened trade and will close it immediately for a small loss.
There is also the concept of risk to reward where if you estimate to get $10 from a trade, there is no need to allow a loss to grow to near $10.
I took a trade last week and when price started going against me i quickly closed it for a $5 loss. After assessing the situation and waiting for some time, I took another trade and make $12 thus recouping the $5 i lost.
Very true, it has happened to me many times. I had to re-train my brain to understand that taking a small loss does not make me a bad trader.
I also agree, I mean i faced the same scenario today. I opened a short trade but when i saw price was going up instead, I quickly closed it for a small loss of $1.45. I went ahead to open a long trade and made around $19 profit.
I didn't delay and begin to hope that the short trade will somehow become profitable, I acted immediately and closed it.
