In this week’s market analysis, I talk about the importance of getting to know when you’re wrong in trading.
Whenever you put on a trade, you have to know the point where you’re wrong. But the question is, when?
This depends on your original trade idea. If your original trade idea is invalidated, you have no reason to stay in a trade any longer. But if the trade idea is still working out, then you have every reason to hold onto the trade.
I explain this with Palladium and Soybean trade which I’ve traded recently.
Do You Know When You’re Wrong in Trading?
I hope you have enjoyed this week’s market analysis. As always, comments are welcomed and encouraged. Cheers!
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very good sharing ,may l know that which broker u r using …. by the way can please explain detail you place the a atr stop loss from you entry price .. thank you !
okie please email to me thank you
Sure thing 🙂
another great article Rayner!
so is it right to say that even though u use 2ATR to set your stop loss, u still apply a certain amount of discretion and may avoid the trade (or reduce the position size) if the stop loss is located on a previous resistance turned support where price may respect and bounce off?
I use a fix 2 ATR for my entries. But when i trail my stops that’s when i apply discretion.