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I agree strongly that attachment to an individual trades profitibility,
and investing emotional energy watching it approach a stop is a no-no.
However, it also seems that too many people approach stops as a "cure-all"
for managing a trade. There certainly are some trades where a stop loss
can be initiated upon entry, but most trades can be improved by working on
exit techniques. Far too much time is spent on entries, while overlooking
the exit. It seems that the stop becomes an easy way out for the trader to
avoid having to monitor and adjust expectations.
So in essence, placing a stop and accepting loss at onset of a trade is
still being attached to a trade- albeit less. Its just the minds way of
placing blame on something else (namely the stop). I realize that being
able to manage a trade without any emotional influence is very difficult,
but it can be done, and is something worth striving for.
Regards,
Chris Lober
> > I place my order with astop loss of 20 points ( $ 250 ) below my
> > entry. If prices keep going down and hit my stop, well, plain simple :
> > I WAS WRONG. Take it gracefully and be ready for your next trade.
> >
>
> RT'ers:
>
> Good post! I think this attitude is overlooked by new traders, and
> critical for daytrading (indeed, any trading). When you place the stop,
> just think of it as LOST. Mentally consider it a loss taken. Don't place
> the stop and then spend a lot of energy hoping the stop doesn't get hit.
> Just be passive about it, and if the market proves you wrong, you are
> already psychologically prepared. Your stress level during the trade
> goes way down!
>
> Jim Oliver
>
>
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