Good morning Trader's friends, how are you today? Are there still people who are troubled because there is a position hanging because of a trapped minus?
I want to invite friends to ponder for a moment about the importance of limiting risk. Try friends, think about how many times we MC and what causes us MC. Most of the causes are that the arena is over lot and does not limit the risk of entry. I want to tell you a little about my experience at the beginning of trading. In the beginning when I started trading with quite a lot of funds, in my opinion, around 30 million, when I entered the market I never used SL because I traded with scalping, like a newbie in general, I applied the original technique of close blue, this technique does seem cool because I can collect profits quickly, but the problem is when my position is wrong I tend to leave it so it makes my margin drained and ends with the MC. Another problem that I face when not using SL is that I often come out of my trading plan, for example, my plan will come out if I have ploating minus 50 pips, but what happens is that when I have minus 50 pips I tend to be unwilling and feel heavy to make a cut loss, as a result I actually added the position again in the hope that the price will return, but what happened was the price continued until finally my MC account returned .. This happened repeatedly, if I had my total loss in forex maybe more than 100 million. But since I limited the risks and discipline to the SL, thanks to God, I have never felt the name MC.
I am reminded of a story, where there is a hunter who wants to catch a greedy monkey, the way the hunter catches the monkey is to punch a coconut shell the size of a palm, then the hunter puts food in the coconut shell. In the end the monkey put his hand into the coconut shell and grasped the food tightly and he did not want to let go of the food because of its greedy nature, consequently his hand could not come out and the hunter easily caught it.
Now the lesson that we can draw from the story is that we don't become the monkey, which is only because of food he is willing to risk his life. If only the monkey would let go of the food contained in the coconut shell, of course he would be easy to escape. Likewise, we are trading if there is a Ploating minus that we face outside of our trading plan, we should not hesitate to cut losses so that our account can be saved. Maintaining prolonged ploating minus is the same as maintaining cancer disease which if not immediately removed it will spread to other bodies causing death.
Linkback: https://www.forex.zone/general-forex-discussion/1/the-importance-of-limiting-risk/731/
