| | | We all see the same thing, computers, the way they are programmed, all of us traders, etc...
Taking positions where you have the highest potential is the key. When it fails, oh well, stop out and try again. When it works, weeee off to the races we go!!
I know a trader who works at CME and he used to always say "My boss loves me, I lose a lot of money". What he was saying was that more often than not, he loses on a trade say 55% to 60% of the time. What his skill was in taking the losses quickly, small drops, not letting them turn large. He was excellent at letting his winners run (while still in the "highest potential" range).
So he lost on more trades than he won but his winners were so much larger than his losers by a "country mile".
His wisdom has helped me greatly over the past few years. It took me a long time to learn the first part of the discipline, cut your losers quickly!! |
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