Fear and Stop-Losses Link

Mar 28, 2007: 1:01 AM CST

I wanted to highlight a personal post redarding a recent stop-loss experience from the 59 Cedar Street blog, which personifies experiences I have had, and I know we all have had.

BP references the fear once in a trade and the almost compelling notion to move your stop to break-even once profit is achieved. I have done this so many times and often ended with the same result as BP – a scratched trade on a possibility that would have achieved or exceeded my target.

Not only does he post the experience, he posts the lesson he learned from it, and with this realization, he can evaluate how to “take the heat” a little longer and fight the urge to avoid pain by killing a trade early.

The post is definately worth reading, as he explores his thinking and how fear tends to cost us in the market (or as Mark Douglas says, we tend to create the result – losses – that we are fearing).

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