A Little Mistake That Could Ruin Your Trading Career

In the world of trading there are very few mistakes that can be a costly as the one I am going described to you in this article. This mistake can be so costly that I have personally seen it set traders back years and even end some careers. This is also a very common mistake as pretty much every trader I have ever talked to myself included myself. So then what is this common mistake that could be debilitating to your trading career? That’s simple; it’s called moving your stops.

 

t’s more complicated… Years ago when I started forex trading I used my SL all the time and most of the time price used to hit SL only to reverse after hour or two. Then I stopped using SL and honstly I was sucessful. I stared for hours on 5min charts ready to get out of the trade immediately(FEAR). Unfortunately it was going so well that I used to increase my trading amounts (GREED). I was so confident and it was going pretty well until one day I fell into a hole I digged for me myself… Not only I lost all my previous profits, but also my account was scattered to pieces.
So, most of traders manipulate with their SL because they are set in wrong place. They got hit one by one and they begin to heistate: do I really need STOP LOSS ORDERS?

I have to admit, have been doing that due to emotion. As the article says, it only added to my losses.

But need to understand once a trader takes a position, and the price moves against him, he already lost the money. Changing the SL will only add to these losses, making “huge holes in their trading account”. The better option is to admit it, let the SL run, and wait for a better entry.

It is all about discipline.

 It’s funny how moving your stop loss further away when in losing position leads to a huge loss,while moving the take profit further away when in winning trade doen’t lead to a huge profit.
I wonder why it is that way.

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