Title: "It'll come back to breakeven" is how small losses turn into big ones
Post:
Had a trade go red once and instead of cutting it, I just told myself "it'll bounce back, I'll wait for breakeven then exit". It never came back. Kept holding for weeks watching it get worse.
Hoping isn't a strategy though. If the setup is invalidated, it's invalidated, doesn't matter if I'm in profit or loss on it.
Now I stick to my stop loss no matter what my brain is telling me in the moment. Small loss now beats a way bigger one later, every time.
The market doesn't know or care what price you got in at.
Anyone else guilty of holding way too long hoping for breakeven?
#Crypto #Trading #RiskManagement
$NVDA.US
$NFLX
$SKT.US
Post:
Had a trade go red once and instead of cutting it, I just told myself "it'll bounce back, I'll wait for breakeven then exit". It never came back. Kept holding for weeks watching it get worse.
Hoping isn't a strategy though. If the setup is invalidated, it's invalidated, doesn't matter if I'm in profit or loss on it.
Now I stick to my stop loss no matter what my brain is telling me in the moment. Small loss now beats a way bigger one later, every time.
The market doesn't know or care what price you got in at.
Anyone else guilty of holding way too long hoping for breakeven?
#Crypto #Trading #RiskManagement
$NVDA.US
$NFLX
$SKT.US