Most novice traders are faced with a situation where psychologically difficult to fix a losing deal. In this quarry, allegedly confirming that the transaction will turn and goes to zero or profits. This is usually related economic news, the alternative wave counting, the indicators in other time schedules (TF), the presence of a single reversal candle without confirmation, etc. In this restrictive SL or not raised at all, or is removed as it approaches the price. The deal closes when the hope for a reversal disappears completely or is threatened deposit. Educate yourself with thoughts from Dennis Lockhart.
These transactions can also be found at sufficiently experienced traders, and even those who offer asset management accounts. The main reason for the psychological situation in which it is difficult to fix an unprofitable deal, this desire to be right. Internally is a kind of dispute with the market: “I’m right and you go wherever I want you to go.” The main loss from such transactions are not material and psychological. “Losing” the dispute with the market, the trader goes into another transaction, to prove their “rightness” once again, to take “revenge” for the last loss. Rates (Lot) increase to clear loss, and everything is repeated.
I think it is justified in some cases adjust SL, but it should be soon exception to the rule than the norm. The main psychological techniques to help minimize the amount of such transactions, is exhibiting a SL, which you are willing to accept if the opinion of the market will very different from yours. Of course, it is important to take into account the technical picture for billing, the protective order. If, before the opening of the transaction mentally lose situation, that the transaction can be unprofitable, ie, agree advance with the market, with any of his script, then, even fixing material loss, we can minimize the psychological loss. They are expressed (in varying degrees) in doubt, depressed mood, reduced efficiency, self-confidence, anxiety. It is important to understand that any, even the most hopeful a deal traders in the market – a risk. First and foremost is the risk of incurring financial losses. Disagreeing with them, exposing the protective warrant formal, without realizing the real potential loss of funds, or constant pushing SL, a trader gets into the psychological trap – a dispute with the market. Before agreeing to any deal on the market scenario, the trader can calmly without too much subjectivity to the deal. This psychological tactic will keep a positive attitude to trade, and future deals will be more clear in psychological terms, not burdened by the situation “loss in dispute.