Thread: Stops in Balance Point - Emotions in Trading

Hello, guys, we all know that letting emotions enter our trading strategy can be devastating (well, at least for your account

Hello, here is what I think: 1. The Stops in point of equilibrium must be placed according to the rules of your strategy, not because yes.2. One of the main objectives in trading is to preserve what you have.Stops in point of equilibrium allow you to keep your capital.3. Some people leave a certain percentage of their position when they have a specific gain and then move the Stop to the point of equilibrium, which helps protect their capital.

Quoting "Hello, here is what I think ..." Hello, Phil, yes, the number one priority for a trader is the preservation of capital, but the second should be to earn as much money as possible.Capital preservation is achieved by limiting your losses (or limiting the size of positions in some of those strategies "without losses"

For me, equilibrium stops have a psychological benefit and nothing else.I hate seeing a position with 100 gain points to revert in a loss.Therefore, I prefer to go out with a minimum or equilibrium gain if the market moves against me.I prefer to miss an opportunity than to stay with a loss.

Quoting "I hate to see a position with 100 gain points to be reversed in a loss."Hello, Trev, this is exactly what I say.If letting a gain become a loss, your psychology affects so much, then it is logical to incorporate these Stops into your strategy.However, do you think your results would improve if you eliminate the stop at a balance point and only leave when your strategy indicates it?I'm not sure.Each strategy is different, but I have noticed that mine has improved since I try to eliminate this psychological component.

Before I thought that the Stops in point of equilibrium were a problem, but now I see them differently.If they get you in a balance point, what prevents you from re -entering if the technical analysis confirms that your diagnosis was correct, but the moment was incorrect?I prefer to take some gain pips to cover the spred and then reposition myself, which increases my chances of success.

I like the comfort of being at an operation without risk with a balance in equilibrium.The problem is that they often get me in balance and then the market follows the direction it had anticipated.To handle this, sometimes I scall my positions.I partially leave when the gain equals my initial risk and I leave the rest run.This reduces my risk exposure and allows me to endure volatility.

Quoting "What prevents you from re -entering if your diagnosis was correct?"You are right, you can always re -enter, but it is not always so simple.If your entrance is close to a strong support/resistance level, it is common for them to get you out of a spike before the price resumes the original address, without giving you the opportunity to re -enter.Of course, the longer your temporal frame, the more likely you find a new opportunity to enter.

Moving Stops about equilibrium is more an emotional issue than technique.We feel good when we think we will not lose money, but that is not always the best for the operation.If the market is still aligned with your analysis, you should keep the stop according to your original plan.Adjusting it without a technical reason can limit your potential gains.

Quoting "is more an emotional issue than technical."I completely agree.Many times, moving the stop is not based on market analysis, but on the fear of losing what you already won.I am working to eliminate these emotional biases from my strategy, although it is not always easy.Thanks for sharing your perspective.