My Steps in Learning - Averaging and Cutting Losses 2.

In the beginning, there were times when I was caught offside, I averaged, the market went against me more, I averaged and the market kept going against me more. By that time I had huge losses, I already overcommited myself and I could not do anything anymore. I was paralyzed. I knew I should not have averaged, I should have gotten out, but I couldn`t force myself to do it..

My answer to the adverse move was to add and I could keep doing it till I was maxed out. But the market still kept going the wrong direction, I ran out of my lots and had to make the opposite reaction.

I tried justifying my action and lack of action in myself. The market can not do this. It is not a genuine move, or it is way overextended by now, or okay I was wrong, but I can not panic out at the worst point, I should wait for a retracement and then I will get out.

This feeling and making this mistake is maybe the worst I ever experienced in trading, being overcommited, proven wrong and can not do anything except admitting a painful loss.

Now, if the market goes against my position a certain ticks, I cut it. I dont try to fight it, or worry about why it happened.