Thanks. Looking forward to covering with some nice profits tomorrow. Then of course play the volatility swings afterwards. I don't understand the point of holding an underwater position with so much activity going on. The market isn't stable enough for consecutive ST growth, there's better money in trading it.
In my opinion, holding a loss is just tied up funds you could be using to make your money back. At least that is the way I look at it. I don't know how many times I've taken a loss and made it back the same day. Most of the time I make it back plus more. Holding the loss position would've put me in either direction so why not take the loss to have a secured negative figure and use the same funds to make another trade and make it all back or make several trades and make it all back. I don't mean to criticize anyone; as each person has their own technique or styles of trading but from the many years I've been doing this, holding a loss doesn't get you any where just like money sitting in a bank act is dead money. Use money to make money. Holding a loss not only prevents you from using that money to make a profitable trade but it also has a psychological factor in it by holding a position that is constantly under water regardless if a day or a few days the position isn't as "underwater". Get out of it, take a loss, refresh yourself and you can focus on making that money back in a positive headspace.
Believe it or not, there is a lot of psychology in trading. Seeing negative positions in an account affects the way one trades that is why I believe to take my loss almost immediately. Holding red positions affect concentration of new positions. It all comes down to the simplistic colors of the market; hence why green markets are positive and red markets are negative. The brain interprets red as a very negative color and actually creates a negative headspace. If you have some time, read some psychology articles. I wish more people understood that trading is psychological. I think you'd find it interesting being that we've been chatting about emotions and how it affects ones trading abilities.
