When most Traders are facing the possibility of taking a loss, they tell themselves that they can not afford to take that loss, I am saying, You can't afford not to take it. A running loss is like a poison that sucks the life out of our accounts until it is dry. The biggest gift that I would give to all trader if I could is how to take a loss and follow profit. I know that I am always taking about this, but it is the #1 thing that cause Traders heartache and financial ruin.
If You are giving Yourself pep talks about bad trades, like "It will come back" then You are already in trouble. I have learned to set my stop losses tightly; You may not be comfortable with that, but whatever Your stop loss is, You must honor it and not move it if price is approaching it. If You are stopped out, it means that Your opinion of the market's direction was wrong and the market did not do what You thought it would do.
So what, it is no big deal. I take losses and believe me it sucks, but the truth is, once You let the bad trade go, You are better prepared with more capital for the good trade. If You trade a good set-up, then You are eventually going to find the right trade, but it is an art that requires discipline. It is all timing, discipline and set-up my Friend.
Trading is not hard, every day the market does 3 things, moves up, moves down, moves sideways, that's all. We make this a hard process by holding on to bad trades. LET BAD TRADES GO AND NEVER LET THEM TRAP YOU!!!!!!!!!!!!
LET BAD TRADES GO, AND DON'T STOP UNTIL YOU ARE AHEAD OF THE GAME. YOU WILL NOT GET EVERY TRADE RIGHT, SO WHAT, SUCK IT UP AND MOVE ON. EITHER PLAY WITH DISCIPLINE OR DON'T PLAY! IF YOU LACK THE DISCIPLINE TO PLAY PROPERLY, YOU WILL ONLY BE ENRICHING YOUR OPPONENT WITH YOUR HARD EARNED MONEY. EVERYDAY SOMEONE HAS TO WIN THIS GAME AND AT THE END OF THE DAY I WANT THAT SOMEONE TO BE ME AND YOU SHOULD WANT THAT SOMEONE TO BE YOU. I CAN'T WIN ALL OF THE TIME, BUT I CAN SCORE BIG WHEN I DO WIN!!!
A loss is like putting a rattle snake in your pocket, it will eventually kill You!
YOU CAN DO THIS (^_^)!