Video 52 A & B: Losing when a good trade goes bad

Question 1

Define Skunk Stop

Answer 1

A stop between two reasonable stops.

Question 2

Example of bad short: 6 bull bars in the last 8. And sell signal bar had bull body closing above it’s midpoint.

Question 3

The difference between an expert and a beginner trader is….

Answer 3

Experts lose less because they get out quickly and not emotionally attached to an opinion.
He’s not emotionally attached to a position and need to feel that he is right.

Question 4

Market Risk =

Answer 4

Things you cannot control.

Market did something that wasn’t likely. A good trade that went bad.

Question 5

For every trade use these 3 type of protection:

Answer 5

1. Always have a reasonable and protective stop in the market and trade small if it is far away.
2. Exit if reasonable opposite signal (does not have to be perfect or strong)
3. Exit if there is a strong opposite breakout. (i.e. bear bars close on or near their lows)

Question 6

What to do when you see one big trend bar going in the opposite direction.

Answer 6

Ge out!

Question 7

Interesting, when a trader is short, and there is no plausible buy set-up, then stay in the trade.

Question 8

Whenever bears are trapped and they’re buying back their shorts, they’re not going to be too eager to re-enter.
When bears give up, odd favor __ legs up.

Answer 8

2 legs Up
Bears desperate for PB to buy back shorts with smaller loss.
Bulls want PB to buy, since expect bears will not sell for many more bars

Question 9

Video 52B is interesting. Need to watch again. Trapped.

Question 10

When a trade goes against you, do not get paralyzed by a need to see what you missed.
Just exit with a loss before it grows too big.

Answer 10

Don’t wait and say, “Oh my gosh, it’s reversing down. There has to be some pattern her that I’m not seeing.”