Episode 217: How to Cut Off Losing Trades Quickly (and Other Quotations by Henry Ford)

Well, 2014 is already six days under way, and we’re grateful that you’re still listening to The Traders Podcast. In Episode 217, your host Rob Booker investigates the age-old question: How do I cut off my losing trades quickly? He talks about having a daily or weekly “watch list” and a standard, of sorts, for trading. Rob also talks about the benefits of making up your mind ahead of time (as opposed to having to make crucial decisions while in the heat of the moment). Also, Rob highly recommends our friend and frequent guest Shonn Campbell’s new Kindle book, The Death of My Friend, “The Trader.”

Other links for this episode:

TFL365.com

Rob on Twitter: @RobBooker

The Traders Podcast on Twitter: @TradersPodcast

E-mail us! Producer@TradersPodcast.com

Trader Interviews.com

2 comments on Episode 217: How to Cut Off Losing Trades Quickly (and Other Quotations by Henry Ford)

  1. Brian says:

    I’ll tell you one very good way NOT to close losers, trading without enough set ups to keep you occupied. I’ll illustrate with an example:

    Trader A and Trader B are both day traders.

    Trader A has a system that gives him 5-10 good entries a day.
    Trader B has a system that gives him 5-10 good entries A WEEK.

    Which trader is going to feel more pressure to hold losers and make their trade work?

    Everybody is different, but if you don’t know when the next hand is going to be dealt, it’s emotionally easier to hold losing cards. Traders have to have enough setups to satisfy their own particular psychology.

  2. Fred says:

    For those of us who are rule-based systematic traders, when to close out a trade is built into the logic of the rules.

Leave a Reply to Brian Cancel reply

Your email address will not be published. Required fields are marked *