I am convinced that 2 things are needed to be a great trader . One is accurate signals. And the other is the emotional courage to stick to your signals. A share that is going from A to B will also have a massive shakeout (or even 8 shakeouts) in between. Even better if you have signals for those shakeouts . The purpose of the shakeouts is to scare you out of trusting your signal. Courage and accuracy is what is needed . We need both. You can have accurate signals , but if you don't have the emotional courage to stick to them , you will trade scared , and not profit from them. If you just have courage without accuracy , you will get eaten alive . As for accuracy , you have also got to know how accurate your signal is . If it is a 30% accurate signal , then you have to have a plan in place to cope with that - tight stop losses, and high risk reward ratio entries. It takes even more courage to trade , if you know that your signal will fail 70% of the time . You still have to have the courage to go for it , knowing that your stop loss will save you. Better to work hard though, and get a more accurate signal.
