“One of the great tools of trading is the stop, the point at which you divorce yourself from your emotions and ego and admit that you’re wrong. Most people have a tough time doing this, and instead of selling out a losing position, they’ll hang on hoping that the market will realize the error of its ways and behave as they believe it should. This attitude is usually self-destructive, because as Joe Granville used to say, “the market doesn’t know whether you’re long or short and it could care less.” You’re the only one who’s emotionally involved in your position. The market’s just reacting to supply and demand and if you’re cheering it one way, there’s always somebody else cheering just as hard that it will go the other way.”
– Martin Schwartz
The market may not know if we’re long or short but the broker sure does and thier stop hunters are out there,
Once I have selected my broker, I focus on my plan and setups, that’s all 😉
Truth! Just doing the same thing ( hoping ) I have lost about 50% of my account in first two weks of live trading…:/ That is something one will never learn on demo account, cuz with virtual 50k usd you can wait forever without worries.;)
Anyway, have to say if the market goes against me I wait for confirmation and close position asap. Well, after one week of trading without loss I have difficulties to close the position.;) That’s why also such trades are important for me…;)
Thank you for your note. Demo is extremely important, the issue is most traders fail to ‘demo properly’; Fist you need to have a plan / a system and then you need to demo it in ‘exactly’ the same conditions > account size, etc as when you will go live…. that’s the trick 😉