How do you protect your ego from the market?
The market is ego-hostile: it proves you wrong constantly, publicly if you post, and expensively if you fight it. Ego protection strategies range from humility practises to posting your mistakes on purpose.
What works for you?
- the practise that keeps your ego in check
- how you handle being wrong publicly
- the humbling that did you good
The stop-loss guide is the mechanical ego check.
Background: Where to place a stop-loss: structure, volatility and time stops
A stop-loss belongs where your trade idea is proven wrong, not at a round number of pips. Here are the main methods and the mistakes that trigger stops early.
How far away should a stop-loss be?
Far enough that normal price movement doesn't reach it, at the point where the reason for the trade would be proven wrong. The position size should then be set so that distance costs a fixed share of the account.
Why was my stop-loss hit when the chart didn't reach it?
Charts usually show the bid price, but sell positions are closed at the ask. When the spread widens, the ask can reach a sell stop while the bid line on the chart stays below it.
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