Accepting Losses

[The Real Moaner]

I know that everyone says that minimising losses is the key to being a good trader, and for the large part, they are right.

However, sometimes you can close a position too soon simply to avoid a loss. How do you resist the urge to close a position too soon? I'm finding myself in the position of closing too soon and then seeing odds against shots race in which is really starting to do my head in!

[nigelbleddfa]

I know that everyone says that minimising losses is the key to being a good trader, and for the large part, they are right.

However, sometimes you can close a position too soon simply to avoid a loss. How do you resist the urge to close a position too soon? I'm finding myself in the position of closing too soon and then seeing odds against shots race in which is really starting to do my head in!

You can't, I'm afraid. I closed the Man Utd Over 2.5 market with a tidy profit after two goals were scored. Ended up 5 - 0.

[Scumbag trader]

I know that everyone says that minimising losses is the key to being a good trader, and for the large part, they are right.

However, sometimes you can close a position too soon simply to avoid a loss. How do you resist the urge to close a position too soon? I'm finding myself in the position of closing too soon and then seeing odds against shots race in which is really starting to do my head in!

You can never close a position too soon

[Firkinelle]

You can't, I'm afraid. I closed the Man Utd Over 2.5 market with a tidy profit after two goals were scored. Ended up 5 - 0.

But did you close it just to get the profit or because you didn't think there would be any more goals?

[refer80]

To true dan,to true

[nigelbleddfa]

But did you close it just to get the profit or because you didn't think there would be any more goals?

To get profit. Portsmouth had been stubborn at the start of the game and it could possibly have ended up 2 - 0 and I would be throwing a tantrum. So, I did the right thing, on balance. First goal was scored on 40 minutes, second on 45. Facing a loss on 39 minutes so breathed a sigh of relief when first scored, jumped out when the second was scored. I had already been well stuffed on the Liverpool game and that makes you concentrate a little more.

[Firkinelle]

No probs Nigel, I have been out this afternoon so didn't know any goal times, reckon you did right - I lost on the Liverpool game as well.

[nigelbleddfa]

No probs Nigel, I have been out this afternoon so didn't know any goal times, reckon you did right - I lost on the Liverpool game as well.

I am presently contriving to screw up the Over 2.5 market in the Livorno v Juventus game 0 - 0 after 24 minutes and could drop out after first goal assuming there is one

[refer80]

There should be nigel,a goal that is

[oldboy]

Nigel - I did the very same thing on the Man U 3.5 goal market. I knew there were going to be more goals but traded out at 2-0 with the intention of buying back in later. A combination of greed and stupidity on my part. Still, profit is profit and we can put it down to experience.

[nigelbleddfa]

There should be nigel,a goal that is

Amazing, isn't it ? Goal on 26 minutes, just two minutes later. Scored by the dog playing at home so will stay in for a while.

[The Real Moaner]

Just made a blog post based on the specific problems I am having - http://against-all-the-odds.blogspot...-my-enemy.html

It is just so frustrating to call something but not see it through but that is what happens when you're as (how can I put this politely...) passionate? as I am.

[Emkayracing]

I know that everyone says that minimising losses is the key to being a good trader, and for the large part, they are right.

However, sometimes you can close a position too soon simply to avoid a loss. How do you resist the urge to close a position too soon? I'm finding myself in the position of closing too soon and then seeing odds against shots race in which is really starting to do my head in!

There is a very fine line between out-and-out gambling and trading. Some people will enter a market with no idea about when they will close out, others will only be entering at a certain point until their pre-determined exit point arrives.
Personally I will not enter a market unless I know what I want from it in the first place. I will either set % odds reductions / growths and get out when they are realised or set a time and close the trade at that point. The point is that you are not always going to be right so there is nothing to be gained by watching a price get bigger and bigger. Close out, get out and move on to the next market that you have planned to trade.
Your question was more geared towards closing too soon and therefore 'Costing' yourself profit - for me backing a horse at 20s and laying it at 10s is job done, I don't care whether it goes on to win the race because my trade is complete. If I layed a long odds-on tennis player hoping for a 100% profit on my initial liability and I got it, I don't give two hoots that they went on to lose. So on and so forth.

[Scumbag trader]

exactly, i've backed my fair share of 20.00 horses with a view to trade out in running, got out at 25.00 and then it wins. Nothing you can do about it.

[nigelbleddfa]

My views are essentially the same as Emkayracing. I'm happy as long as I have a profit. My mindset is now firmly fixed at avoiding losses and taking profits. I do not work to precise percentages and I rely on my gut reaction as to when I should close. If I have a potential profit in the Over 2.5 market, I either take it or let the bet run to buy me extra minutes in the market. By this, I mean I try for more profit, but ensure that my stake is not lost.
I know what I should do and when I should do it. If, however, the goals, if any, come late, I have fewer options. I lost all my stake in the Liverpool and the Tottenham games today. I never had the chance to trade out by taking a profit or saving my entire stake.
I made money on two football games and both rugby internationals in the Over smarket. The Real Madrid game is not going too well and if doesn't buck up soon I am going to end up losing on the day. If I get three goals I'll end up quits on the day. If not, I'll be one init stake down on the day.
However you look at it, a lot of work trading six games for not very much today, but, if there had been goals in the two total losses I would have done well. My trading on the other games has "kept me in touch" as it were.
And, as luck would have it, Kaka has just scored the second goal for Real and I have jumped out. Small loss on the day. Couldn't be bothered to even think of a third goal as I have had almost nine hours of continuous sport and am now hitting the Cabernet Sauvignon