Exiting Early
Exit any trade as newly developing
patterns or market action are contrary to trade–even if a stop point has not
been reached. Ask yourself, "If I had to have a position in this market,
which way would it be?" If the answer is not the position you hold, get
out! In fact, if contrary indications are strong enough, reverse the position.
—Jack
Schwager, from Schwager
on Futures: Technical Analysis (1996, John Wiley & Sons, New York).