Lee thanks. A e really important points there.
So if i try and take a dispassionate look at my trade:
I opened the position on the 7th of march at 14084. The real world price stood at 14329.
The Dow closed at 14565 on Friday meaning a running loss of around £250 (there is a 21 point spread).
The reality is that I should have set my stop a lot tighter but I didn't hence the loss at the moment. But of I look at the Dow today I still see the same issues as last month.
One of my rules is always to go with the trend and whilst the overall tend is upwards, the last four days have showed a lower close.
I was tempted to go with setting my loss at the all time high but instead with the trend now downwards I think I will trail my stops lower and lower.
Hopefully that seems a sensible solution?
Hi Kitbag,
I cannot and will not comment directly on the trade in play, nor should anyone else as no one knows what will happen next, as previously stated you will also have conflicts of interest. Only you can make this decision.
I will only discuss the issue at hand and that is you need to get something sorted out which is why we are here in the first place. A rigid plan would put your mind at ease and prevent you from second guessing, asking others or searching for answers in news feeds or graphs.
Now.....the only way out of a tricky situation is to do just that, get out of it. In your career of trading you will come to understand that taking losses is THE HARDEST thing to do. Anyone can take a profit whether it be a few quid or multiple thousands but when it comes to chopping a losing trade, this is where the skill comes in.
The moment any trader steps outside of the rules/guidelines then all trades should be chopped and trading should cease immediately. Keep it simple.
Once you have a solid plan in place and one in which you believe in and have full trust in then you will find that your emotions disappear. Think of an owner of a gambling house, the owner does not worry about the person winning money at the table (assuming its won legally), nor do they worry about the losers, they just keep an eye on the bottom line or the overall figures and over a set period of time.
Keep this in mind, if the trade goes good for you then in your mind you would have done the right thing, if it goes against you then you'll be thinking otherwise. Either way, a trading plan is crucial.
Lee