Dear Readers, It is very unpleasant for me to see that some traders maybe overextended and getting anxious about their positions.
Please remember rule #1 of trading.
1) Do not lose money
This means very simple thing. Trader never commits to a trade that he/she can not carry either a completion or termination via stop. That is not as simple as it sounds. Especially for a longer term trade. By definition the stops must be far and risk is greater for the same amount of money that one may play for a short time. That is why the position size must be chosen very carefully and the mental stop ( anguish stop) must be known apriori. I do not control those things, because they are uncontrollable remotely. Trader does. There is another thing. What if trade goes against you and find that you do not want to leave trade ( fear of missing profits) yet market keep going against you. If you are a trader, you know what you must do. Something must be indicating to you a trend. We all have our favorite indicators. Some use averages and some use MACD and some use Directionals and/or fractal trend indicators. There is as many as there are traders. So, one must abandon the the losing position, but not forget it, watch for another time and place to enter. Let us say at 50% fibo the trade has went against you, natural place for this is to get out and wait for 62% FIBO and/or AP or a reversal on the favorite system to reenter the trade. There is not much anybody else can do. Or if you are very well capitalised and know your long term cycles, you can sit with the trade and allow it even to go deep as fare as 20-30%. Now, I do not like to operate that way. That is a way of SOROS and ROGERS. I am a trader and I think I can do better.