46 Replies to “When Should You Stop Trading? (The Golden Rule…)”

  1. Hey clay just watched your video. Just wanted to say I've been self aware since I was around 15 yrs old, always stepping outside of myself and reflecting on my behaviour and social interaction on a daily basis. I would have also walked away because I done get paid £500 per day so it's always a bonus … Well done. U can always come back another day to fight again …

  2. I’m so impressed with your knowledge. As well as your desire and persistence to share information here daily with so many. Thank you.

  3. Do your best to be Mentally and Emotionally prepared!
    Always a good idea.
    P.S. I would have been pissed off about that $15,000 too.

  4. Started with a 15K account, made 1K, got greedy and tried to get more money, ended up losing the 1K, tried to get back the 1k, ended up down 7k, did not walk away, ended up down 10K, presently at 5K. Ridicules. Walk a way

  5. Thanks Clay for posting this video. I am really struggling with this issue and it is really costing me substantially not only financially, but my failure to make right/correct trading decisions has created self doubt on all fronts. I engage in self awareness and understand my habits however I seem to not be able to break the habit. For example I traded AMZN the other day I made a nice profit however I failed to get out sooner and as a result I loss part of my profit ($20,000) because of the down turn. In the aftermarket AMZN went to 2,133, however I was in options and could not trade so when it closed at 2,030 and opened the next day at 2,055 my exit strategy was to get out at 2,100. Like a frog in a boiling pot waiting for 2,100 it closed at 2,008. I am ashamed to admit it but I sat and watched this travesty but held on to the belief that it would go back up to 2,100, to at least 2,050, or at least 2,030 as it continued to fall and I failed to get out until 2,008. I ask myself is this based in failure to get out because I know the true value or is this greed. Why did I stay in Clay? I am so upset with myself. I have repeated this habit numerous times. Please suggest some type of strategy to save me from myself.

  6. Absolutely. Just 2 weeks ago I made a trade and closed for small winner about 15 seconds before it ran up and halted not once but twice. Easily could've doubled my entire account but I saw my exit criteria and got out. No rules broken but missed out big time.

  7. Currently trading micros at day/night , well one night I pull up the screen and it’s tanking. instead of hearing the voices of forming a game plan, the “it’s going to zero!” “Get in now!” Voices were very loud. I wrestled with this (felt like forever) 10-15min. Before just shutting down the screen and going to bed. Also yes , it drop 30+ points but CHASING instead of logical Entry’s /Exits is not good long term behavior. Actually felt great the next day reset/refocused. Thanks Clay great vid!

  8. That happens a lot to me. I trade options. Had many times where I bought for .50 to 1.00 per contract and later on in the day or the following day they’ve ran up to 3.00 or more

  9. This is virtually every trade. Maybe not at that extent, but basically almost every trade is more profitable than what the trader actually pulls out of it. It’s impossible to know the max profit entries or exits of any trade. It does sting to see the missed opportunities though!

    Great video, great advice! I enjoy them all.

    Just curious, do you track your trade win %? And do you trade futures much at all?

  10. Happen to me yesterday on UPS bought a 110 put the day before right after earnings, turned 140 to 345 I sold in the morning when market opened… then market crashed and now that same put is worth 640 😪

  11. This is why you never cover your whole position. Always save yourself a lil slice of pie, 50-100 shares and let it ride with a .50 stop. If the trade is still going the way you want it to then why jump out full size. Scale out to lock in profits but at the same time extend profits.

  12. Had stock in SPCE on Friday. Got in at $17 and moved my stop loss just a few cents too high and got cashed out at $17.25. The price then went up to 17.80 and I didn’t follow the golden rule and continued to trade to make up for the money I missed out on. Ended up in the red for the day.

  13. Lol I traded a put option on bynd yesterday and hopped out with like a $50 gain and my trade at the end of the day if I held woulda been up like 700% lol

  14. New trader here, left profits on the table plenty of times, some very large. I try to eliminate the “What if” factor and just be happy I walked away green. Tomorrow is a new day and new opportunities present themselves everyday in the market. I feel that the “woulda, coulda, shoulda” mindset can create bad habits. For my style of trading(flipping option premiums) I realized if I want to make larger profits, I need to risk more capital, but I am nowhere near that level yet so I continue to learn more and more about myself and trading and take it day by day. Any day you can make 500$ profit by clicking buttons on your computer, in the comfort of your own home, in a sub 1 hour window, is a great day and better than the majority of people out there. Some people make that 500$ in a 40 hour work week. Green is good 🙂

  15. I had 400 shares of TSLA and sold 12 minutes before after trading started. The price was going down just before earnings so I took the 5k out on the day. It went up $67 dollars 3 minutes into evening trading. I could have made another 24k. Yes I was not happy with myself but I didnt loose. Oh well.AHHHHHHH!

  16. Got out of ES-mini short Friday with a $400 profit before market dropped 600 pts without me. Could have made thousands also. Know your pain.

  17. I had 4 amzn feb 7 call before earnings during the dip for $6.35 and bailed at $10.00 before eod, now its worth ~$132.40. Thought they were going to lose ER based on last ER call and 1day Shipping cost. It stayed in my head for the entire day.

  18. Sorry Clay i have watched a lot of your videos and i wish you have stayed in the trade, but your strategy is good and i have not seen you staying too long in the trade. Candle or two, only when you are building positions you are longer in it.

  19. I understand the emotion, I felt that way about the UPS earnings. I set up to go short but I wasn't paying attention to the fact the earnings came out before the Bell. So I couldn't get the put contracts in before the drops happen. When I seen the drop I just wanted to throw my phone. Like you I knew I shouldn't try to force any other trades that day so I just didn't even look at the market for the rest of the day.

  20. Clay, very good video. I have been there and I really appreciate your transparency for it has given me comfort to let me know that I’m not alone. I will incorporate the rule and make it the golden rule from this point on knowing that this should be a part of the trading strategy. Stop! Drop! WalkAway!

  21. @claytrader really good video, enjoyed it a lot, thanx man. Just wondering do u have a physiological things u do before u trade e.g going over the displines of trading?

  22. Bro, this video comes just at the right time for me! This has happened to me before where you post a video that I can totally relate to on my previous trading day. I was up 18% on my account scalping the Dow and Nasdaq futures on Friday. It was 2:30PM and I was like, ok let's be done for the day and enjoy the weekend. But then I got this crazy feeling of overly self-confidence, and I thought the markets were going to bounce. Long story short, I went from up 18% on the day, to down 35%!!! I got all stuck in this circle of where I couldn't admit being wrong, and threw all my rules out the window for it. I thought I was going to make a killing trade, well a killer it was, killing 1/3 of my account that is.

    When you talked about our habits and tendencies, and especially self-awareness, I imidiately thought back about that moment of overly self-confidence just a minute or so before I entered into the suicide trade I took. Eventually I got out, because I just couldn't take the bleeding anymore. Which was good, because I could've lost about 70% or so, but still it's just ruined my weekend.

    Thank you for sharing Clay, always enjoy watching your videos!!!

  23. Traded codx the other day, bought at 2.90 in the morning and cut my losses when it dipped down to 2.70. Took the hit and i moved on. Later at 3:30pm it went up to 3.50! I was gutted. I need to be more patient I guess.

  24. The level of humble bragging from these trading 'experts' astounds me sometimes. I just wish they could each sell me a premium training course, so we could make them rich as trading will make them go broke. Oh wait, what's under the description…

  25. Mind blowing!!!
    It listens to your videos on the way to work raggedy factory job.
    Gets me pumped up to exit and vacate loser status.
    If a stock has been around for a while, future seems good and it fluctuates often then couldn't you just hang in there until it eventually goes back up.
    I could see getting out asap with shady or penny stocks.
    Stay or go? Pro's and cons with both decisions.
    Weigh the risks I guess.
    What you're saying reminds me of a good quote…
    "Never make a decision if you're sad, angry or in Love".
    It's like construction, sometimes it gets frustrating. You stop thinking right and screwing up. So the best thing to do step back, chill for a minute, relax and then come back to it and it'll look different and you'll have a different, calmer mindset.

  26. This happened to me today.. I had a chance for an extra $100 in profits but went flat on a position. The stock dropped $4 after I exited (I was long so I dodged a bullet).. We dont know what the market is going to do even with us being technicians. What I've noticed is that when I follow my strategy and hit my daily goal and the stock continues.. I feel the emotions come in (you know the hindsight emotions that kick in? LOL).. But when I back track.. there were a ton of days my strategy helped me dodge bullets.. As long as I meet my daily goal.. and the stocks continues higher I am ok.. What I cant take is hitting my daily goal and then watching myself give back all my profits because I've decided to be greedy or let past hindsight memories encourage bad decisions such as breaking rules.

  27. Know your limits ! That's the best piece of advice. The most difficult part of trading is that each position you take is a risky move. Whatever happens, you could be on a winning strike of 10 wins and then because of some factors you could mess up and lose everything you did before. So, know your limits ! If you feel tired, angry, hungry, upset… Stop trading, go out, have a walk, a nice dinner… Don't insist ! Because if you try so you would fall bluntly in the overtrading… Risk all and lose all.

  28. I bought 28k shares at 0.60 and few weeks later it went up to 0.64, i was so happy and sold all of it immediately. Few months later it reached 0.92….

  29. "golden Rule" is part of Theory. The concepts used are part of the Theoretical Framework. We could say that this video is about Practice, concrete activities and not Theory (be it Research or Study, or even mental experiment)

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