[thelastbear]

Hope and luck have no room in a trader’s dictionary. Never hold on to a losing trade past your risk management level based on hopes that it may turn around. A lot of new traders make the crucial mistake that they adjust their stop loss or hedge level as the trade unfolds.

For example, they set their stop loss level 50 pips away and now the trade moves against them. Being down 20 pips and everything is fine, down 40 and you see your trade highlighted red in your terminal as you are 10 pips away from your stop loss. You start to panic, check the chart and now think what goes one way for this long has to turn around eventually and 5 pips away from stop loss and safety you adjust it by another 25 pips.

Congratulations, now you have successfully violated your risk management protocol and exposed your portfolio to failure. You are now down 65 pips after a spike and over the rest of the trading day the trade moves in your favor and you head to bed being down 18 pips and feel comfortable with your decision. Overnight events unfold and you wake up with your trade highlighted in red.

You check the charts and news and all looks like this sucker will turn around because it just has to. You adjust your stop loss another 25 pips and 8 minutes later you are being stopped out at twice the amount you were able to afford. Next stop: revenge trading with destination total account failure.

Don’t trade based on hope.

[bret]

Just curious

You kind of a story teller or what ???

[UMOFX IB]

Always do trading on realities . Market not moves on our hopes . We should not hope a lot from trading . As much we had skill we can make that much profit is trading. Hopes are not come true until we had any ability or skill , See what market wants from us not hope what we want from market.

[Rambo35]

I agree that trading based on hope is a terrible idea. I think it shows a lack of discipline as well as absence of a real trading strategy.

[mk3fx]

yea this is like a basic thing to learn, but 90% of traders fail and I guess fail to realize they shouldn't just buy/sell on what they think might happen but what they KNOW is happening... even though there's always an element of unknown

[wizard77]

Just curious

You kind of a story teller or what ???

The Last bear is no storyteller, he's trying to help other traders grasp the reality of the markets.

[ACE]

The Last bear is no storyteller, he's trying to help other traders grasp the reality of the markets.

Yea, I agree. This is Forex 101, which trader is most likely to succeed

trader A) Gee, I hope EURUSD will hit 1.23400 today, its near there so I'll buy and see what happens
trader B) We're close to major fibonacci level on the 4h, once hit it may cause a major sell off, i'll wait and see.

Well?

[bret]

The Last bear is no storyteller, he's trying to help other traders grasp the reality of the markets.

No hard feelings mate. Just wanted to clear the doubts

[bear]

Well i do trade on the "HOPE" i make money

[bear]

No hard feelings mate. Just wanted to clear the doubts

Trouble maker