Stop Losses Are A Part Of This Business – Accept It

The market is random. You may have done all your analysis properly and at times the market would work out the way you have expected it to. This will make you confident that you were in control of the whole situation. Is it a safe method?


There, however, would be times when the market would just cross your level and behave as if it did not exist. The analysis that you do is just yours. The market reacts to your analysis based on what the other active traders are doing. If they are all on the same page as you then your level works out. If not then the market would ignore your level completely.

Your analysis can get invalidated by a single trader who has all the money to change the market direction. It is just one person who can decide whether the market would go higher or lower. This happens even if there is a herd out there shouting the other way round. It does not matter.

This does not mean that your analysis is all a waste. This only means that any emotional attachment should be removed as you will never be able to predict with a 100% surety about what the market is going to do next.

Keep reviewing your trades

The profitable traders spend a lot of time analyzing their own traders. They analyze a large trade sample to understand what they have been doing wrong continuously and then work to rectify it.

Market tips

Just google on the internet and you get plenty of tips on particular security. There are more than hundred sites that will tell you about what the market is about to do next. It is important to know that no one in the world knows what the market is going to do next.

Each one’s perception of the market is different and thus it is only you who can analyze and tell what the market has a higher probability of doing. It is important to believe in your strategy and stay away from all the tips that are there on the internet and on the news sites.

Accept the risk in the market

You may be placing stop losses on all your trades but you do not really want the trade to hit that price.  You may place the stop far away from the entry price. You may even be tempted to move the stop because you think that the market may change its course of direction.