Tweet
This is a prime example of a lesson in adhering to your disciplines. VTIV averaged in at 19.88 on 2000 shares. 7% loss exit at 18.49. I haven't set a stop at this point but am watching the trade an if it hits 18.49/18.45 range it's sayonara baby with a 1.49 point loss on the trade and the 2000 shares. That's - $3000 on the trade which if it goes that way is going to knock out alot of some recent gains on other recent trades that went the right way. It sucks and feels like shit but consider that it is better at this point than wishing and hoping that it rebounds only to watch it drop further for a bigger loss. The only consolitation is to stop the bleeding now early enough and to preserve capital to catch it sometime later on when it does rebound or to enter other trades which hopefully will work out better.
It seems like alot of money an it is a decent amount but it's all just proportional to the amount that you're working with. The whole idea is to give your trade room to breathe within your particular tolerances so you gave it a chance to do what you thought it might do. When it doesn't then the point to preserve capital becomes the primary objective.
I'm working with a decent amount of capital in this trading account. The $3000 loss is not much of a dent in the total pile but don't think that it doesn't hurt just as bad to take a hit like this if it does go to the 7% loss point an I bail out. It takes a whole lot of will power to walk away from it when your emotions are screaming to hold it awhile longer in the hope it will recoup. They very seldom do in these situations and the loss only increases in size and you're left telling yourself that you knew this was going to happen and why did you let it which increases the frustration and confusion level. In this activity that is the last thing you need to happen to your mental processes. Much better to stick to your plan and take the loss to live to play another day.
In the meantime it's at 18.54 and getting down to the wire. I'm sitting here in my office watching the screen and the stock dive and thinking you have to be masochistic to even think about trading these markets.
It seems like alot of money an it is a decent amount but it's all just proportional to the amount that you're working with. The whole idea is to give your trade room to breathe within your particular tolerances so you gave it a chance to do what you thought it might do. When it doesn't then the point to preserve capital becomes the primary objective.
I'm working with a decent amount of capital in this trading account. The $3000 loss is not much of a dent in the total pile but don't think that it doesn't hurt just as bad to take a hit like this if it does go to the 7% loss point an I bail out. It takes a whole lot of will power to walk away from it when your emotions are screaming to hold it awhile longer in the hope it will recoup. They very seldom do in these situations and the loss only increases in size and you're left telling yourself that you knew this was going to happen and why did you let it which increases the frustration and confusion level. In this activity that is the last thing you need to happen to your mental processes. Much better to stick to your plan and take the loss to live to play another day.
In the meantime it's at 18.54 and getting down to the wire. I'm sitting here in my office watching the screen and the stock dive and thinking you have to be masochistic to even think about trading these markets.
Comment