4 Ways To Know If You Should Cut Your Trading Day

  • Published on
    13-Jan-2017

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  • There's a lot to be said about human nature and how it applies to

    trading

  • If you know when to push a trade, you'll

    probably see some of your good days turn

    into great days

  • So how do you decide whether to carry on

    trading?

  • Power Of Quitting

  • Ive made money.Ive lost money.

  • Mostly though.Tick neutral, higher commissions and

    mental exhaustion.

  • The issues which must be addressed are:

  • Market conditions turning sub-optimal

    Switching off mentally

  • Emotionally opposed to continuing to trade

    "I should've stopped" syndrome

  • MARKET CONDITIONS

    TURNINGSUB-OPTIMAL

  • SWITCHING OFF MENTALLY

  • You could well end up turning a decent up day into a down day

  • BEING EMOTIONALLY OPPOSED TO

    CONTINUING TO TRADE

  • You've clocked up a tidy profit and you

    want to bank it

  • I know when I've lost a nice profit the weekend has not exactly been fun

  • When you're at that point and you want to stop, your emotions

    are heightened

  • THE "I SHOULD'VE STOPPED" SYNDROME

  • There's no bias to this feeling

  • Because you felt unsure about continuing to

    trade, your mind tells you that you're a bad

    trader!

  • "I was too greedy"

    "I was dumbto carry on"

  • If you can become skilled at identifying when to push, it can make a big difference to your bottom line

  • You must consider the points above

  • Is your system robust?

  • Halve your position size?

    Stop if you lose half your profits?

    Trade all the same setups as before?