In reality, many people would have passed for good traders, assuming they were able to stop when they should have. The biggest problem with newbies in the world of trading, is not knowing when to stop. Generally speaking, you have to know when - enough is enough in life.
You should be able to create limits and boundaries for yourself. You should be able to discipline yourself to stop when it's right to. There are many examples of traders who have made lots of profits, but they just don't know when to stop, and the market ends up taking those profits back.
It's usually like - a trade is up 70% in profits, and still keeps on trading, but suddenly - the market starts acting crazy, and he losses some money. Now, he's 50% in profit. At this point, most professional trades will stop, for a break and come back later. But inexperienced traders will want to get back to 70% in profits.
In that struggle, they lose some more. And after losing some more, they lose their logic and they get angry at the market. And now, they go ahead to place an oversized trade, hoping to recovery their losses. And boom! The account is blown out - down to zero.
In retrospect, this is a trader who was 70% up in profits - how happy he would have been, had he just stopped at that point, to rest his brain and mind and body. You need to become more conscious when trading. And learn to take profits when the market gives them to you. And above all, know when to stop.
Becoming a good trader involves a lot of tactics and one of those tactics is being able to know when to stop the trade. At some point after making some level of profit or loss, there should be a perfect time to cut trade, and a smart trader knows when to do that.
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Exactly the point. Thanks for commenting.
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