Losing When Good Trades Go Bad Flashcards
Losing From Mistakes
Losing From Mistakes
Single most important rule when trading, rely on a protective stop while in the market
Single most important rule when trading, rely on a protective stop while in the market
a Trader Losing from BAD LUCK
a Trader Losing from BAD LUCK
I can AVOID BIG LOSSES by having RULES
I can AVOID BIG LOSSES by having RULES
3 Types of Protection I can use for EVERY Trade (Rules)
3 Types of Protection I can use for EVERY Trade (Rules)
MOST IMPORTANT RULE - NO MENTAL STOPS; ALWAYS HAVE A STOP IN THE MARKET
MOST IMPORTANT RULE - NO MENTAL STOPS; ALWAYS HAVE A STOP IN THE MARKET
Appropriate Stop - If WRONG GET OUT EARLY
Appropriate Stop - If WRONG GET OUT EARLY
Stopped Out I can Re - Enter if the TREND Resumes
Stopped Out I can Re - Enter if the TREND Resumes
End of Session I should get out of a Trade FASTER
End of Session I should get out of a Trade FASTER
If there is no reversal signal to get me out of a Trade, but I still need some sort of good signal to get out
If there is no reversal signal exit if strong opposite momentum
Once I believe my premise is wrong get out of my position do not rely on my stop
If there is no reversal signal to get me out of a Trade, but I still need some sort of good signal to get out
If there is no reversal signal exit if strong opposite momentum
Once I believe my premise is wrong get out of my position do not rely on my stop
Strong Trends EVENTUALLY have Disappointments
Strong Trends EVENTUALLY have Disappointments
BTC Trend ALWAYS has a Final Trend BAR
BTC Trend ALWAYS has a Final Trend BAR
Easiest Acceptable Management is to Just Rely on Stop as long as premise is still valid and stop has not been hit, a trader will hold onto his position
Easiest Acceptable Management is to Just Rely on Stop as long as premise is still valid and stop has not been hit, a trader will hold onto his position
Disappointment should signal me to exit a trade for a loss not to make profit
Disappointment should signal me to exit a trade for a loss not to make profit
Disappointed but no PB - GET OUT BREAKEVEN
Disappointed but no PB - GET OUT BREAKEVEN
Possible Bad Trade, but Premise is STILL VALID, Rely on STOP
Possible Bad Trade, but Premise is STILL VALID, Rely on STOP
If premise changes you have to change the style you are trading
If premise changes you have to change the style you are trading
If the premise changes it is OK TO EXIT
If the premise changes it is OK TO EXIT
Strong BO - 1st PB will be BOUGHT
When a Trader Believes Bull BO is Strong enough so that PB will be bought, he buys the Close of the BO Bar or the Follow-Through Bar
Strong BO - 1st PB will be BOUGHT
When a Trader Believes Bull BO is Strong enough so that PB will be bought, he buys the Close of the BO Bar or the Follow-Through Bar
Deep PB - TR is likely so exit near the TOP
Deep PB - TR is likely so exit near the TOP
: Deep PB - It is OK to Exit Breakeven
: Deep PB - It is OK to Exit Breakeven
Buy above Bull Bar since the Scale In Bulls will Buy There
Buy above Bull Bar since the Scale In Bulls will Buy There
Disappointing Follow - Through, watch the next 2 -3 Bars
Disappointing Follow - Through, watch the next 2 -3 Bars
Disappointing Follow - Through, Scale In to Exit without a Loss
Disappointing Follow - Through, Scale In to Exit without a Loss
Disappointing Follow - Through, the Bears Try to Exit Breakeven
Disappointing Follow - Through, the Bears Try to Exit Breakeven
The Bears cannot get out Breakeven and the will Buy Higher
If you see STC Bears not able to get out once and then raise their limit order and unable to get out a 2nd time, they are going to just flat out give up and that usually creates a reversal(The Bears will get Trapped, look to go LONG)
The Bears cannot get out Breakeven and the will Buy Higher
If you see STC Bears not able to get out once and then raise their limit order and unable to get out a 2nd time, they are going to just flat out give up and that usually creates a reversal(The Bears will get Trapped, look to go LONG)
If there is Trapped Traders then there is Fuel, ENERGY for the market to make a move
If there is Trapped Traders then there is Fuel, ENERGY for the market to make a move
Trapped Bears have to chase the Market up and Take a LOSS
If you know you are wrong and the market is telling you that you are wrong, DO NOT WAIT FOR YOUR STOP TO GET HIT; Simply just get OUT
Trapped Bears have to chase the Market up and Take a LOSS
If you know you are wrong and the market is telling you that you are wrong, DO NOT WAIT FOR YOUR STOP TO GET HIT; Simply just get OUT
Trapped Bears MUST EXIT
Bulls see the Bears are Trapped and they buy for a minor reversal up, betting bears will NOT SELL AGAIN for at least a couple of bars
Trapped Bears MUST EXIT
Bulls see the Bears are Trapped and they buy for a minor reversal up, betting bears will NOT SELL AGAIN for at least a couple of bars
Reasonable Entries usually get Tested within 1 - 3 Bars
Reasonable Entries usually get Tested within 1 - 3 Bars
Trapped Bears Expect a RALLY
Trapped Bears Expect a RALLY
Reasonable Entries sometimes tested after 20 bars
Reasonable Entries sometimes tested after 20 bars
Do Not Let Losses Grow; I can always Buy Again Later
Do Not Let Losses Grow; I can always Buy Again Later
Strong Reversal, the Bears are Selling exactly where the Bulls are getting out
Strong Reversal, the Bears are Selling exactly where the Bulls are getting out
Strong Reversal; exit early before my STOP is HIT
Strong Reversal; exit early before my STOP is HIT
