Close your trades before something big happens. Major press releases have a significant effect on the market, and you will not know if this change will be good or bad until after it happens. Prevent any losses you may experience by completely pulling out of the market until the swarm has blown over. Use stop loss orders to limit your losing trades. It’s a mistake that too many traders make, hanging on tight to a position that is losing money in the hopes that with time the market will reverse course. People can become greedy if they start earning a large amount of money through trading and the result can be extremely careless decisions motivated by emotion. Desperation and panic can have the same effect. It is key to not allow your emotions to control your trading decisions. Use knowledge and logic only when making these decisions.
Categories :Pieces