Bad Day Trades Gone Worse - Tips to Avoid Big Losses
A common response to making a bad trade is to immediately make another trade, in an attempt to win the money back.
This is human nature and can quickly end your day trading career before it begins so be aware.
Day Traders often follow a rule after a bad trade where they wait 5 minutes before making re-entering so that proper analysis and timing are the reason for entering again and the trade is not done based entirely on emotional response.
Trading Psychology Of a Bad Trade
1. One must understand that this is an art of probability and a certain number of times the day trader will be wrong. Without this understanding the day trader will be drawn in to making a small loss a very large loss as they play a stock in the opposite way it should be played. Adding greater losses to losses and gambling.
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