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Stops - Daytrading Reality Check
The first thing I think everyone should realize about stops, they are
the most important reality check in the market. You must place a stop
whenever you enter any trade and then keep them in moving in the direction of the trade.
This is the reality of a stop placement, it is the only protection you
have and you would be fooling yourself to think otherwise.
Mental Stops - Bad Idea, Especially for Novice Traders
A beginner watches the market like the way a rabbit watches a great big
snake, frozen in fear, unable to move. You are better off placing an actual
stop in advance of any trouble within the market. Putting a stop in when
things are quiet is much easier than later and under extreme pressure.
A beginner cannot afford a mental stop, trust me I've been there.
If you're not using stops, then I suggest you either quit or put your money in a mutual fund and walk away.
Get Used to the Idea of Getting Stopped Out
Do not confuse fantasy and reality. Amateurs daydream
of profits and avoid the unpleasant thoughts of losing their cash and
turn into investors instead of traders as soon as a trade goes again them
(with no stop in place). It's a lot better to decide in advance how we
will deal with reality. Put the stop in.
Best regards and good trading,
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