That s why serious traders focus on it. Trading is a rational process. Devising a plan, managing it and executing trades requires an ability to detach the emotions whether times are good or bad. And serious traders should want more security than the toss of a coin down a well can offer. Manage your trades with technical analysis by identifying risk points as well as setting profitable objectives and you ll be better placed for more consistent trading.
Traders often spend a lot of time on the entry and too little on the profitable exit point.
Often a vague figure is chosen more by supposed gut instinct than economic reality. Handling losses is as crucial as locking in profitable trades. We need to focus on stop-loss points because they are key to turning our trading hopes into reality. But the emotions Trading has to be acknowledged as an emotional activity. However invasive and damaging emotions are to efficient trading, it s impossible to eliminate, no matter how hard we try.