30-Day Trading Challenge Lesson 9: Never Chase a Win

30-Day Trading Challenge Lesson 9: Never Chase a Win
June 10, 2015 Market Traders Institute

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Check out this excerpt on never chasing your wins… A lesson in trading emotional intelligence:

Excerpt from the 30-Day Forex Return Formula:

Want to know the quickest way to watch your trading account self-destruct?

Chase the win.

It’s one of the easiest traps to fall into when your emotions run high in your
trades.

It looks like this:
You’re in a trade. You’re confident and
adamant that you’re correct in
your assessment of the market
and then it happens. You’re
staring at the chart as it moves in the
complete opposite direction,
limits you out and then
moves quickly back in your
direction.

You see red.

You scramble, placing the trade again in the middle of the move, maybe even
throwing more money in your trade to make up for the loss…

Wrong again.

Now, the market reverts back to the original trend (the trend where you were
limited out earlier). Bam! You’re losing again… Worse yet, you’re now losing more
than you would have if you would have just let it go.

You see, when you emotionally invest in your trade, you make mistakes.

You cannot chase a win. When you decide to re-up the trade or act brashly, you’re
throwing your account in the fire. You’re no longer trading… You’re gambling.

“The market’s never wrong. Your job is
not to teach the market the lesson. The
goal is to work with the market, learning
its lesson for you. Never trade with the
intention of making the market go your
way. Trade with the way of the market.”
– Jared Martinez, FX Chief™

Live to trade another day.

If you were smart with protecting your account with
the equity management techniques we discussed earlier, you should be able to
manage that amount lost because you have already determined that that amount
of risk was something you could stomach. Chasing the win puts you at risk for
losing more than necessary, giving you less funds to work with in future trades
where you might win that money back.

Stick to the plan, man!

Stick to your trading plan. Accept a loss and move on to
the next trade.

This was an excerpt of the 30-Day Forex Return Formula. To get your full copy now, go here >>

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