Once you think about the money, you are dead? Yes. That is what usually happens to the public.
What is your own way of handling losses? Get out. Quickly? If I can. My point is that I have a lot of patience and I wait. If I know it is a losing trade, I wait for what I
think is the optimum time to bail out. Then I try and reverse.
So, if you realize you don't like the trade anymore, you'll get out, but you'll pick your time? Right, but I will get out.
Let's say you are doing that on a day when the market is a one-way street. At what point do you just have to cough it up? It depends how far it has gone against you. If it's against you a long way, at some point you just throw it in.
Those days happen maybe three or four times a year. You just start bailing out.
But you usually have a feel for when that is the thing to do? Yes, because it has happened before.
But normally, if you are just a bit behind in a trade, you are better off if you let the market move a little in your direction and try to sell on strength, or buy on weakness, instead of just trying to dump it in a hurry? Right.
Is that a key element to your trading style? Yes. Never give up on a trade. Many traders who are in a losing trade will just get out because they were
taught that you have to have discipline. Great. Those traders will always be around. But if they just had some
patience and said, "Yes, it is going to be a losing trade, but instead of getting out here at 7, maybe if I wait and just
sweat it out for another minute, I can sell at 10."
Is it a matter of just wanting to get out to stop the pain? And if they were willing to stand the pain a little longer, they would be better off. Is that a fair way of putting it? Yes. They give up too quickly. In most cases, if you don't give up, you might be able to turn a five-yard loss
into a two-yard loss.
