​​HOW TO UNDERSTAND WHEN IT'S TIME TO STOP THE TRADING SESSION | Simone Bolivar

​​HOW TO UNDERSTAND WHEN IT'S TIME TO STOP THE TRADING SESSION

Negative numbers in the "profit" column are always unpleasant. Especially when the situation drags on for a long time, and even worse - progresses. Even experienced traders know what losses are: sometimes an open trade does not bring the desired results, but leads to the opposite. It is very difficult to guess if it is really worthwhile to stop trading. But in any case, it is better to be covered and close the session with minimal losses than to give in to emotions and burn the whole deposit, hoping to get back what was lost.

The best way to protect your deposit when trading in the red is to calculate your losses as a percentage. If you have lost 10% of your deposit, it is time to stop and wait for the markets to return to equilibrium You should never go all-in on any of your trades. Traders who try to cover their losses that way, sooner or later lose all of their capital. The loss should not exceed 10% of the deposit.

REMEMBER THIS RULE AND NEVER DEVIATE FROM IT

If the trading session is in the plus, then the time frame is a subjective question. Trade as long as it brings you money and a feeling of satisfaction. If the market is good, then you can trade the whole day. The important detail is not to get overworked. If you feel tired, take a break. Have a cup of coffee, think about something else (not trading), and then, 15 minutes later, you can continue trading being full of energy.