image
image
image

Switching Strategies Too Quickly

image

It is easy to feel motivated to get out of a position and into something new. Many people will move from one strategy to the next because they feel the ones that they have been engaging in are not working well. You should expect losses no matter what strategy you use, but that does not mean you should abandon a strategy because it is not working well for you. Rather, you have to be persistent and stay focused on the particular strategy you have decided to use.

As you trade, be prepared to lose at least half of the positions you have entered. Do not worry about losing that many because this is what stop-loss orders are for. When you do have a successful position, you might have an unlimited potential for gains depending on any stops (or lack of) you have instigated. Therefore, you should never assume that you are doing things wrong.