Thanks for that @sharks37
Your last paragraph about managing the trade and risk management rang a bell with me.
I remember reading a report (many years back) by a trader who - to prove a point about trade management - took blind entries (long or short) by flipping a coin, and then once opened, he went about managing the trade as well as he was able.
If I remember correctly he was able to turn a small profit this way over many many trades (maybe 50 trades or more trades, or something like that).
I can't remember what instrument he was trading, I sort of think it was currency futures, maybe the cable, or the Euro.
Anyway.....it did however, clearly illustrate how important good trade management is.
Effectively he was cutting trades very quickly when they were obviously wrong, and allowing winners enough room to move for potential profit.
And he also moved his stop up enough to cover his brokerage fairly quickly, so as to be in a break even position to reduce risk.
If I get some time, I'll see if I can find it over the weekend.
cheers
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