DO NOT Micromanage Your Trades

You have definitely heard of "Market Makers". They are there to make money from your mistakes and/or emotional reactions. If you are a trader who is sitting in front of your monitor all they long watching your positions you have noticed the effect of market makers in equities. Very often they just dump a big chunk of stock to drop the price in order to buy more shares for a cheaper price. If you micromanage your trades and get emotional you can too be a victim of this trick and lose great amount of money.

The first solution for those of you who are watching your trades closely is NOT to use stop loss orders. You must have a stop loss but if you are there use mental stop losses since they can see your stop loss and their artificial intelligence software can simply calculate how much they can make buy dropping a stock price and buying it back. Second way to protect your capital would be following your own rules of trading by sticking to your profit taking target, and stop loss target and not moving them based on short term fluctuations in the market. When something unexpected is happening first check if there is any news about the company or general market then check the sector, (Sector's Graphs). If everything looks normal it should be the Market Maker trying to shake you out and make money off you!

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