Last night, just before I slept, I glanced on the EU and US markets and saw red. The DOW went down 231 points at open. What did I do? I slept. Yes, completely switched off! Do I care? Of course, I’ve just bought STO shares again, which had gone up last week, then shed in value the previous day to around the price I bought them. But do I lose sleep over it — I try not to!
And this is how I sleep it off. Remember we set a stop BEFORE we enter the trade. Know that number. Be sure that that number is something you can afford to lose. In other words, something you will not lose sleep over. Then go to sleep! You will not know how much the share price would move (until it actually does), you can’t dream it to go up, so best to just relax and let the market do what it wants to do until you actually need to do something when your stop is hit.
Easy?! So today, of course waking up, I was a little bit worried, but because I’ve had a nice peaceful sleep and did my meditation and prayer in the morning, I faced the day relaxed and pimple free! This is an important part of my trading procedure that I share in my book. If having a structure to guide your trading appeals to you, I am more than happy to share.
As it turned out, STO would have a mildly volatile day, but still ended up 11 points. See, all that worry for nothing!
But suppose STO did lose money, you know your well-placed Stop is going to do its job for you. So Stop stressing!