Many will say it’s greed but the largest losses for almost all traders is going to be revenge trading and we have all been there.
You know how it is. You lose a little and then went to trade until break even. Then you lose some more so you take more trades with higher positions and these trades basically make no sense in technical analysis and you are pretty much guessing at this point and eventually you go bust. Happens to every trader.
I must say revenge trading happens only to those who are greedy. Because if not, then they will just call it a day and just come back to trading when there is enough capital and whenever the market is perfect to trade. But I completely believe that all traders experienced this revenge trading. Because we don’t want to keep on losing and used up all our funds, so we start to do some revenge trading hoping we can easily recover our losses, but it seems it only lead us to losing a lot more until we end up in a very worst situation.
Yeah, he didn't realize that both are still the same. If we are not greedy, we will stick on our limits so we still have something left to trade the next day and so on. I don't think this is called a revenge trading but it's just another trading session. Trading must be done like this so that we can be able to trade often and expect earning some profits. About capital, we must only use the money that we can afford to lose.
We must not took a loan or sell our valuable stuff. If greed unexpectedly happens and we drain all of our money, then just accept the mistake and move on. All experienced it even once or twice but that's normal because we are just humans.
SL's or limiting your losses is really indeed crucial thing not only on trading but simply or into investment itself on which you should really know on when to set those losing limits rather than on losing all of your assets.
We know that it cant really just that possible that we could be able to predict on whats the future on which it would really be not that shocking if ever we do really miss out some opportunity out of those positions that we have set earlier.This is why as a trader or investor then setting out your risks management is really that important because if you wont then you would really be that shocked on something that unexpected to happen.
We do know that we cant really be having that huge capital or something that we could make use neither on trading or investment which it is really just that sensible that we should really be setting out something
like this or else you would really be seeing your entire bankroll would be blown up in shortest time as possible. Risks management and handling it would really be that important and
really that most crucial.