In life, we all tend to learn through the school of hard knocks. In fact they say that you can never become successful unless you have failed along the way. It is as if failure gives us all some rich experience and teaches us how to be better at whatever we are doing in the future. Yet you don't want to experience too many failures when you are starting off as a trader. There's a lot to learn and it's certainly fair to say that it can be a daunting task. Still yet you also don't want to put up too many shields and defenses, as if by doing so you're going to defend against losses.
Expect to have a relatively steep learning curve in any trading environment. There's nothing wrong with making those mistakes as you go but you do want to ensure that you do not repeat the mistakes or get involved in making too many bad decisions due to incorrect assumptions or the forming of bad habits. You do need to be able to know when to cut your losses and when you should just hold out and leave sleeping dogs lie as profits accumulate. Some experts refer to the correct approach as "the golden rules of trading." With TradeStation trading those golden rules are going to become increasingly important for you.
When you're inexperienced and see a nice profit unfolding in front of you one of the first things that you may try and do is to cash out and take those profits. On the other hand the hairs on the back of your neck may start to stand up when you see losses accumulating. At this point you may be falling over yourself to cash out in order to "limit the damage" as it were. You need to be learning about automated exit strategies that can safeguard your activities and take a lot of that "knee-jerk" reaction possibility out of the equation. Such a process can discourage you from trying to collect those profits before it's time.
Good stoploss management strategies and tools will also help you to avoid the opposite end of the spectrum. When you have such tools in place you won't need to enter any panic mode, or be classified as reactionary when what you should really be trying to do is smooth out your activities as much as possible. Remember that software strategies and TradeStation trading tools are there to help you and have been designed by experts with considerable knowledge in the field.
Being an avid writer and also a TradeStation trading enthusiast, Tim Spears possesses an unrivalled appreciation for the particular intricacies within the dynamic financial trading markets. Here is a great TradeStation Resource http://www.customizedtrading.com/resources
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