a different kind of stop loss

there are three main reasons why traders don't use stop loss"

1. fear of booking the loss

2. expectation (sometimes proved right) that market will turn

3. loss of face that you were proved wrong

these are genuine factors

and it takes lot of time and effort

sweat, tears and blood

to tame these psycho-dogs!

--

i too had a lot of difficulty in overcoming these hounds.

then, one day

i found a unique psychological trick

which helped me trigger the stop loss

without even an iota of hesitation.

rather, i started loving pulling the stop loss trigger.....

here is it.....

--

whenever i find that i am on the wrong side of the trade

i don't bother to trigger the stop loss.

i just buy double the reverse position.

this may sound childish

but for me

this mental trick worked

just as penicillin worked on multiple infections

many decades ago!!!

--

it not only saves me from the mental tug of war

with my ego and emotions

it also works as a SAR (stop and reverse) for me.


i am always in the trade

and any loss is immediately overcome with profit.

tears are too small lived

they get wiped out by smile.



lately

i have further improved this trick as below:


i buy in current series (futures)

and sell in the next series.


i offset the booking of respective lots of respective series

by taking advantage of the zig zag motion of price within the channel.