If you have a bad position that you KNOW is bad, and you hold it overnight and just pray for a better price to get out - see the opportunity to get out when it presents! Don't let your hope get the best of you. I was burned today as I took a long position before closing yesterday. Before the bell it looked like we might get a turnaround day, so at the open I actually had a chance to get out. Instead I sat there waiting for a higher price - EVEN THOUGH I KNEW THAT THE OVERNIGHT SELLERS VERY SOON WOULD CROWD THE TAPE. I let the hope get the best of my head, my week's profits and my trading.
What's more is that after waiting for months and months for this to turn I am trying to go long for a swing!? DON'T GO AGAINST THE TREND. If the trend is bearish, look for short entry. If it is bullish, look for long entries. Sometimes it just feels like I try to lose.
UPDATE: We very well might see a good bounce, the overnight support of the lows on ES held well, and now I think we will see what the bulls can do. For my long position I will hold for the moment. Held way too long anyway. Another rule: don't let a swing trade/scalp turn into something longer term. Just cut the loss and make money any way the market will go.
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