How to take a Loss

How to take a LossLesson 4 of 94 min read

Study the market

The question to ask after a losing trade, and the far more common question that teaches you nothing.

The trade is closed and the money is gone. The chart is still on the screen, and it is the useful part.

Go back to the chart

Open the same chart while the move is fresh. Mark where you entered, where the trade closed, and what price did afterwards.

This takes a couple of minutes and it is the whole reason the loss was worth paying for.

The chart after the trade is what you actually bought.

Ask why price moved

There are two questions available, and only one of them helps.

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