Let say, you open a position and the trend move so fast (just too fast) go in to your favor, and your previous experience says this is already good, i should exit now because too many times before I got this much but closed for much less.... so exit now.
or may be maybe like other chase, you enter a position but the price just stand still and going no where, your previous experience says
"hey i've been here before, when this condition occured ussually the price will move so fast sooner or later but my system is not designed to capture this moves, if I hold my position I can be so rich or so broke! what should I do... may be I should exit now taking small loss and put twin stradle stop with few pips to stop in chase the price make double move (dive and fly or jump and sink), yeah thats feels better for me"
I know it sounds like a nonsense just like telling a fairytale, but that is exactly what I do. Especially for newbie who try to capture all the move, in most chase they'll regret exiting a position with small profits because after he/she close, the price can buy him/her a new car, but I just try to think like this, what if thats a negatif? certainly those small profit look better isn't it?
Another experience most newcommer affraid is to close in a loss, why? because they think it will be just a temporary, he/ she will search infoation arround the net, asking everyone in traders chat room, asking their mentor again and again, etc
well here what my mentor ever said when I keep a bad position, more than that I did looks like a fool who fall in love with my ugly position;
"just to know it, asking everyone will be useless why? because what ever they all saying as long as you have 1 people saying what you want, you'll do what you want. don't you realize that the market always have 2 sides? and both always think they are smarter? both will deffend their own opinion so it is useless to ask someone wheater to hold or dissmiss."
lol, it sounds like he don't care, but then I know he was right.
So I've learn that a good exit is not necessarily in profit! Why? well loosing 40 point it still better than loosing 200 point isn't it?
This will take us to the system itself, what the system is intended to do, how much this system usually earn profit? how much the standard floating loss occured before it goes into profit? etc, etc, etc
most importanly can we have the guts to execute our decission when "something seems too good to be true so we want to be there forever" or "something so bad so it mustn't be real, I believe I'll wake up soon..." ??? well get out and wake up now!
Hope can can be useful
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