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I know how hard it could be holding on to a losing trade, but if you know well ahead of time what you stand to lose and your exact point of entry, you can lessen the emotional and psychological strain. With that said, conjure up a trading plan or system in a trading journal well before you take a trade.
In this trade plan, specify your rationale for entry, your desired entry price, your specific target, your stop loss and the percentage of your account you have at risk. Of course, you should also write down your thoughts (what you did write and what you did wrong) after your trade. It's going to take a lot of work, but eventually, it will make you become a better and more profitable trader.Trading is a skill, and much like any other skill, you need to put sufficient time become an expert in it.
Below are a couple of good examples of these so-called "trade plans."
