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Cutting Your Losses - What Does it Really Mean!? πŸ˜• Video

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What exactly does cut your losers really mean? http://www.financial-spread-betting.com/Risk-stop.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How do you go about exiting losing trades!? Every educator out there says cut your losers, run your winners but what exactly does it mean when we say: cut your losers. We know we don't want to run our losers on and on and losing a thousand pips while making 10 but what does it mean - when do we cut our losses? Where do we cut our trades if they are loss making?

What Exactly Does Cut Your Losers Mean!?

Let's consider a very simple strategy'; buying at support. Ideally the market would bounce on support and we would make a handful but we need to put a stop at such a level that the thesis of the trade is negated. You have to pre-determine where a setup is no longer valid. Now let's consider buying a pullback - this a a little more challenging. Here cutting your losers would mean cutting your losers straightaway. You don't want to keep holding stuff or flipping into a different setup just because the trade isn't going in your direction.

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