Sunday, February 02, 2014

What to do when stop losses hit continuously

Hi friends,
                  As the topic says "What to do when stop losses hit continuously"
There is no sure shot thing to come out of this situation,Its a painful situation.

A lot goes through a traders mind during that phase,
What wrong i am doing ?
Did i analyze the scrip wrongly?
Did i force the trade ? etc etc.

And all this time the calculation of loss continuously happens in
background ,So with each new stoploss hit the urge to win back becomes
stronger and stronger.
Eventually trader think to win back most of the loss in a trade and ,Thats how
he increases the stakes on trades and if the loss continues it adds to the agony.

I have managed to come out of this situation only by decreasing my stake on
each trade ,Till in get my winning rhythm back.
How you come out of such situation!!

If you do something different to win back do share your methods.



Manoj Khokale said...

I trade based on patterns trade mostly based on 60 min charts. Whenever I face this situation (that is hit SL 2 or 3 times in short duration) I understand market is volatile and come out of the market completely. But bigger challenge I've faced is to know when to re-enter the market..

Rish said...

Yes Manoj re-entry would be a big challenge ,That the reason to stay in market i reduce the stake on trades..

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