When I first started trading one of the biggest fallacies I got caught up in was having a ‘hard stop’. Invariably, those hard stops would get taken out time after time. And they always seemed to get taken out right about the time when maximum panic was setting in (if long) or maximum euphoria was setting in (if short). What a load of bullshit.
I caught the video below on Barry Ritholtz’s blog today but as a sort of human interest post. Let me tell you for the record, it should have been tagged as a TRADING POST! This UK WWII propaganda is such a core piece of my trading philosophy now that I have already ordered my mug from Amazon and can’t believe I haven’t had one sitting on my desk for the last several years. Seriously, do yourself a favor – watch this and internalize its message from a trading perspective. It will help you in a meaningful way:
