This is an extremely important one and should really make us think about the fact that we should not be married to a position:
“When the facts change, I change my mind. What do you do, sir?”
– John Maynard Keynes
As traders, we have to always be looking and listening to understand what the facts are. Once you are in a trade (pulled the trigger, stop loss set and take profit level clearly defined) unless the facts change, then let the trade follow it’s course BUT if something changes and you KNOW this, then the ‘let’s see’ or ‘hope I can get out quick’ strategy is the quickest route to pip loss or a margin call.
Stay safe and pips for all!
4 thoughts on “Thought of the Day…”
This is one of the bravest trading moves, in my opinion, there is to execute. Pride tends to step in the way and tell you, that your first decision was correct and that admitting otherwise is failure..
Mastering this has saved me many a BAD loss.
Yep, a signal is only valid till the next one.
You are very right and a trader is always tempted to forget what he/she knows should be done… it’s a constant fight but one well worth fighting if you get it right!
And “a signal is only valid till the next one” is so CLEAR and SIMPLE but not easy to follow… LOL! Ah.. the mind….