Have you ever taken a trade, only to immediately regret your decision and want out? Jordan and Levi look at whether it's ever a good idea to immediately hop out of a trade, and whether this changes with experience level. Key Takeaways:
- Beginning traders should avoid getting out of trades immediately, as this can solidify bad habits.
- Good traders who have traded enough, can trust their instincts and feelings better. They know how taking a good trade feels, and so when they take a trade and it feels wrong, it may be acceptable to jump out early.
- Taking trades multiple times in a row after getting broken out, is similar to moving your stop loss further away... it is doubling down on a bad trade. Give the market time to reset and give you another look. Conclusion:
As a beginner, avoid jumping out of trades too quickly. This can lead to a lot of bad habits, where fear is the driving factor behind your trading. As you gain experience, though, you can begin to trust your feelings more. If you take a trade that is bad, you can begin to trust the fear that originally was keeping you back and turn it into a tool. Socials: Website: www.Anarchytrading.com Twitter: @Anarchytrading YouTube: @Anarchytrading
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