Have you ever taken a trade, only to immediately regret your decision and want out? Jordan and Levi look at whether it's ever a good idea to immediately hop out of a trade, and whether this changes with experience level.
Key Takeaways:
Beginning traders should avoid getting out of trades immediately, as this can solidify bad habits.
Good traders who have traded enough, can trust their instincts and feelings better. They know how taking a good trade feels, and so when they take a trade and it feels wrong, it may be acceptable to jump out early.
Taking trades multiple times in a row after getting broken out, is similar to moving your stop loss further away... it is doubling down on a bad trade. Give the market time to reset and give you another look.
Conclusion:
As a beginner, avoid jumping out of trades too quickly. This can lead to a lot of bad habits, where fear is the driving factor behind your trading. As you gain experience, though, you can begin to trust your feelings more. If you take a trade that is bad, you can begin to trust the fear that originally was keeping you back and turn it into a tool.
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