Re: Honje's collection of indicators, strategies and trading journals
Posted: Fri Oct 07, 2022 2:12 am
The purpose of stop loss is to reduce anxiety, relieve pain, and avoid irrationality.
Be sure to correct this misconception: Stop loss is not your fault, nor is the market proving you wrong. Stop loss is because you don't want to lose yourself by irrational trading and leading to huge losses.
If you are struggling with how to avoid the "wrong" stop loss, you will never find the "right" answer.
Because stop loss is not based on accurate judgment of market conditions, but based on your own judgment and control of rational and irrational boundaries.
Stop loss is a precautionary behavior. It is not to prevent you from judging the market trend right or wrong, but to prevent you from falling into an irrational trading state.
Be sure to correct this misconception: Stop loss is not your fault, nor is the market proving you wrong. Stop loss is because you don't want to lose yourself by irrational trading and leading to huge losses.
If you are struggling with how to avoid the "wrong" stop loss, you will never find the "right" answer.
Because stop loss is not based on accurate judgment of market conditions, but based on your own judgment and control of rational and irrational boundaries.
Stop loss is a precautionary behavior. It is not to prevent you from judging the market trend right or wrong, but to prevent you from falling into an irrational trading state.