Patrick,
The TASC article you referred to is the reason that all "so-called
systems" work or don't work.. It boils down to money management..
Any system will work 50% of the time.. but the key to success is to
recognize quickly, when it is not.. cut the loss.. get out quickly..
As you know, many successful traders use completely different
systems...are on opposite sides of a trade at any moment.. but
the SUCCESSFUL trader on the wrong side.. recognizes it quickly..
gets out. while the other lets it ride.. the next time, the roles
are reversed... and on and on.. only 50% right.. but the trade
dollars on the RIGHT side are much more than the wrong side..
Personal example... this week, bot PFE Aug 125 calls because
I thought..it would run to about 123-125, when it was about 119.50,
Tried it twice.. couldn't bust thru.old high of 121.75.. paid
2 7/8.. when it stalled out second time at 120.50, sold at 3.00
broke even.. Recognized, I was on wrong side.. No harm, No foul,
NO EGO.. Now PFE at about 116.00 option at about 2.00..
Patrick, I know you and other experienced traders know this..
but I mainly write it to REMIND MYSELF..
Good luck..........the Coug..
P.S... I dropped TASC because IMO, they over analyze simple things
and try to be TOO TECNICAL.........gggg |
