What do you do when a trade goes wrong?

[kenfrost]

Hi folks, I would welcome your input on this.

When trading pre race markets in the 10-5 minute window I place a trade (back/lay) in the hope that the closing entry makes a profit. However, sometimes the market moves against me; ie there is a rapid large steam or rapid large drift on the trade and I face a loss.

I have identified the following possible actions when faced with this:

1 Do nothing, and hope that the market reverses before the race starts so that I can green/red out for a smaller loss before the race starts.

2 Green/red out immediately and take the loss

3 Keep the unmatched bet/lay in play and hope to green/red out for a smaller loss

4 Take the sp and hope to green/red out for a smaller loss

5 Double down and pump more money in with a view to lessen the loss or make a profit before the race goes in play

FWIW, I have tried all of the above on occasions and sometimes manage to make a profit and other times come out with a spectacular (relative to my original stake) loss.

I would be interested to know if there are any other possible actions I could take to minimize the loss?

I would also be interested to know what you do when faced with this situation?

Thanks

[weemac]

Don't do 3 without a logical reason.

Never do 5

Stake smaller.

[kenfrost]

Don't do 3 without a logical reason.

Never do 5

Stake smaller.

Thanks.

What do you normally do when faced with this situation?

[weemac]

Don't do 3 without a logical reason.

Never do 5

Stake smaller.

Thanks.

What do you normally do when faced with this situation?

I wait, and either close out near the off, or let it go to BSP, but what I do suits me and maybe not you.

But if the loss feels too big, your stake is too big. It's that simple.

[kenfrost]

Don't do 3 without a logical reason.

Never do 5

Stake smaller.

Thanks.

What do you normally do when faced with this situation?

I wait, and either close out near the off, or let it go to BSP, but what I do suits me and maybe not you.

But if the loss feels too big, your stake is too big. It's that simple.

Thanks, and very good point about stake size!

[Euler]

When you go into a trade you should already know what to do when it's going wrong.

I'll enter a trade with 'scorecard' of what makes it a good trade. It's a 10/10 then it's max stakes, but it's a 3/10 I'm not sure if I would trade it.

On the flip side when I exit, I know roughly where I will exit and why. If that starts to break down then I start to exit quickly.

So I do have a defined stop loss or any sort of recovery plan, I treat it like a 'reverse entry'.

I did an example of exiting a duff trade on this video: -

https://www.youtube.com/watch?v=FnzF8gxNYvI

[kenfrost]

When you go into a trade you should already know what to do when it's going wrong.

I'll enter a trade with 'scorecard' of what makes it a good trade. It's a 10/10 then it's max stakes, but it's a 3/10 I'm not sure if I would trade it.

On the flip side when I exit, I know roughly where I will exit and why. If that starts to break down then I start to exit quickly.

So I do have a defined stop loss or any sort of recovery plan, I treat it like a 'reverse entry'.

I did an example of exiting a duff trade on this video: -

https://www.youtube.com/watch?v=FnzF8gxNYvI

Thanks.

My failing in trading is my inconsistent approach when a trade is going wrong, which of course leads to inconsistent results (good and bad). I will take heed from this and stop being inconsistent!