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If you were looking to open a position, placing a bid to go long one tick in front of a big order is a good idea because you will be filled before the big order instead of after it. If I wanted to go long at the current prices in this example I would place a limit order to buy at 5231 and if I wanted to sell I would place a limit order to sell at 5232.5. With these orders I would feel confident that I would get filled. 75 Chapter 11: Executing Trades Our ability to execute trades efficiently is dependent on our state of mind. We want to maintain an: Open Focused Objective Positive And flexible mind Such a mind is open to opportunity and quick to accept and respond to losses. We want to avoid: Fear Anxiety Self-doubt Anger Blame Self-criticism Apathy Greed Complacency Etc When we find ourselves in any of the above states we are led to destructive trading behaviors: Over trading Procrastination Freezing Holding onto losing trades Adding to losing trades Taking profits prematurely One of the challenges of trading is the fact that we have a strong desire to succeed; we want to make lots of money, it is very important to us. The problem is that the more we want something, the more value we attach to the outcome; the more anxious we are to achieve it. It is the anxiety that is the greatest 76 obstacle to our success. The feelings listed above that we want to avoid could all be attributable to our strength of desire to succeed. As soon as we want something, we start to fear that we won't get it; we start to doubt our ability to achieve the outcome. This fear, doubt or anxiety may lead to feeling angry, to blaming (of ourselves or others), to apathy (we can just switch off when too much is at stake) etc. Whatever emotional states we flow through in response to the initial anxious response, it is this initial response that we need to deal with. |
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