the best thing i was ever told about trading is to "always look for any reason to not take a trade"
if the trade dont seem like its a sure thing then just let it pass. there will always be another.
i have tried chasing trades, and tried catching the falling knife way too much till i learned that simple rule.
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ride winners, cut losers short. This is a trend following statement, each individual has to decide on what that means. Take a $100,000 account. lets say you only trade the es, first thing is how much will you lose on a trade ( cut losers short). I would risk no more than 2% per trade, that may be a high figure to some but I am very aggressive. So 2% of $100,000 is $2,000. You can then position size from there. If you have $5,000 in margin per contract you can trade a max of 20 contracts. Lets say we have a strong feeling that the es is going up today, buy 2 contracts and you will win/lose $100 for each es point. That gives me a max stop loss of 20 es points, 2 es - 20 points = $2,000 max % loss. If this is a winner you then have to decide how long to ride the wave before you get out!
You got to know when to hold 'em, know when to fold 'em,
Know when to walk away and know when to run.
You never count your money when you're sittin' at the table.
There'll be time enough for countin' when the dealin's done.
Bless you Mr Rogers Sir
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