Let’s talk about an important strategy that’s often overlooked!
Lowering your trade size when things aren’t going your way is like hitting the brakes when you sense danger ahead – a crucial move to protect yourself from further losses.
Trading poorly happens to the best of us. Maybe it’s a string of bad decisions, or perhaps the market just isn’t playing nice. Whatever the reason, the last thing you want to do is compound your losses by stubbornly sticking to your usual trade size.
Instead, I view lowering my trade size as a strategic retreat – a temporary step back to reassess and recalibrate. It’s about preserving capital and maintaining a clear head amidst the chaos. By scaling down my trade size, I not only limit my downside but also give myself the breathing room to bounce back stronger.
Some might see this as admitting defeat or playing it safe, but I beg to differ. It’s really a strategy for playing the long game – protecting my capital today so I can trade another day. And trust me, when I do get back on track, I’ll ramp up my trade size with renewed confidence.
So, fellow trader, remember this golden rule: when trading poorly, don’t double down – scale down. It might just be the smartest move you make all day.
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