Hi Everybody,In the first example today I would like to stress the importance of using correct position sizing in all your trades. Here I have deliberately found the worst run of trades on the US e-minis yesterday to demonstrate this. There are not many Gurus who deliberately use bad examples, but then very few are truly interested in showing you how the markets really unfold.
Here we had 4 automatic trades on the 3min YM yesterday, 3 were losers and 1 a profit. The amateur traders will look at that and say, that is not good, but the amateur does not understand correct position sizing and how by keeping the losses small, at only -1R each and the profits large, at +4.2R in this example that even with more losing trades they should have made money overall.
Losses can and do happen in the real world, this is why it is so important to keep these inevitable losses small and under control....
But this was the worst example yesterday chosen just to show this point, I do not suggest taking all the trades without consideration of the larger degree trend.
Thanks, Steve
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