Many of us are suffering with the habit of trading and we have been trying to change but nothing happens.
Why is it that we are not ready to take stop loss but to kill our account and may be ready to destroy ourselves but not ready to take stop loss.
We humans are evolved from ancient human to modern human however in the drastic change we human could not forget/change the habit of being beast caveman.
So being so modern has not change the habit of treat any fear to the equal to death. And when our stop loss is about to hit we human think to attack on us and consider it a death threat and instead of accepting small loss we try to avoid and do everything not to take stop loss.
Example:
We start :
- Averaging a loosing trade
- whole capital fully at risk
- even adding money to cover loss as quickly as possible.
- sitting whole day with the loosing trade and if nothing happens carry over to next day.
- next day arrange money and still keep averaging the loosing trade.
- finally day has come account blown
In this whole process we cannot sleep and whole time we are in emergency mode our life becomes hell.
Think if we could take a loss as decided then this situation never confronted to us and we could trade next day and if set up is good we can easily not only recover our loss but could have earn some profit.
More things will be added in this article soon.
Stop Loss the Soul of trading-Without soul one dies