Even though we nail both the high and the low of the day on Friday, which was absolutely amazing ! And had already banked a nice +7R Profit (on the Russell), it does not mean that losses still do not unfold.
It is important to understand that losses can and do unfold, even when you have a clear larger degree picture. BUT (and this is the important part) the losses are kept small., A -1R loss on the 3min NQ (see chart) is still very small when compared to the +7R Profit on the Russell.
I am still amazed at how many Amateur Traders simply do not understand that it is not the “number” of Profits or losses, that is important it is their related “size” that is important. Big Profits and small losses, that is the secret to long term success in this industry.....
Thanks, Steve
It is important to understand that losses can and do unfold, even when you have a clear larger degree picture. BUT (and this is the important part) the losses are kept small., A -1R loss on the 3min NQ (see chart) is still very small when compared to the +7R Profit on the Russell.
I am still amazed at how many Amateur Traders simply do not understand that it is not the “number” of Profits or losses, that is important it is their related “size” that is important. Big Profits and small losses, that is the secret to long term success in this industry.....
Thanks, Steve
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