Have you ever overridden your stop in the hope that your losing trade will come back to breakeven?
Have you ever traded without a stop in the hope that there will be a mean reversion?
Have you ever hedged a losing position in the hope that you can trade out of it?
Have you ever traded on your gut in the hope you are right?
Almost all traders have been guilty of counting on hope at one time or another but winning traders have discarded the word a long time ago.
I cannot emphasize this strongly enough.
Winning traders do not rely on hope. They follow risk management rules.
Hope is a great word for the real world but it has no place in the trading world. Hope is a dirty word for a trader.
If you want to be a winning trader, eliminate hope from your trading dictionary.
I have seen more than my share of traders hanging on to losing positions in the hope the market will recover.
In most cases, it didn’t work out. If your analysis does not support your trade cut your loss and start again.
This is my trading tip. Eliminate hope from your trading dictionary.
Feel free to coinact jay@global-view.com with any questions or comments.
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