The point of this video identifies that loses should be limited and winners should be allowed to continue in trading. However, often students and other individual’s often make the choice to let their loses continue, and stopping their winnings. The video identifies that there is a psychological reason for this trend of letting losing trades continue, while winning trades stop. Therefore, it is important to not allow emotions to get involved when trading. Winning or losing a trade is not personal.
https://www.youtube.com/watch?v=QuuV3QqogwE
Key Takeaways:
- Don't take a losing trade personally
- Maintain emotional control at all times or stop trading
- Follow your plan, stay disciplined, or else you will lose money
"Limit your losses and let your winners run."
Originally published at 4 Minute Drill for Traders – Week 2 – Limiting Your Winning Trades?
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