The rules are
- If the entry is terrible and the SL is in a non-sensical place – in this case, try and get out at BE and plan a better entry.
- If I realise that it’s a non-existent setup, close the trade with minimal accoount damage – if the trade is going well then just remove risk from it.
I do not want to get back into the habit of closing winners and fiddling about with trades so that I end up with lots of small losses. But today I did close some crap trades I was glad I did so – but these results distorted my thinking and then I started fiddling with trades again. Much better not to take crap trades in the first place.
Examples from today
Closing crap trades reflects the correct mindset: profits come from consistency not fannying about hoping a dodgy setup will be a winner. Not only is this poor practice but it distracts me from seeinmg good setups.