Here’s Why Trade Management Always Works
Not every trade is going to be a winner.
We can’t control whether or not an individual setup is going to work when it
comes to executing a trade that presents a perceivable edge. Bottom line, we
take the trade if the criteria are present. What we can control is the money
management part of the trade.
11:29:06
Intraday Setup Alert
Xilinx (XLNX)
has established a 1,2,3 bottom after filling in the bullish price gap. The
stock is trading higher by .27 at 22.36 and holds a TMs 3 Month RS of 81.
As you can see from the above, whichever
strategy you used for picking a stop loss, the result was the same, a small
loss, on “one” individual trade within a strategy that holds a
longterm tradable edge. Keeping the loss small
helps keep us mentally ready for the next trade, as well as the capital
necessary to build up our bottom line for the next opportunity within a
well conceived trading plan.