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Tom Stein wrote:
> Intel wrote.
>
> <.so what you are saying is that you really don't know where the S&P
> is going,
> right???? Nobody does..................>
>
> Yea...it was a smart*** comment, but their is some very strong truth
> to it.
>
> It took me quite a while(along with more $ than I care to admit) to
> come to
> the following conclusion..
>
> It doesn't matter where the market is going.
>
> There is no 100%...so what really matters?????????
>
> MONEY MANAGEMENT....
>
> I have now learned to look at every trade, not from the perspective of
> "what
> will I make if I'm correct", but from the perspective of "what will I
> lose if
> I am incorrect"......I found that looking at trading from this
> perspective has
> helped me to keep my losses managable, so that I am always around for
> the next
> trade. This outlook has also helped me to keep an even temprament and
> lower
> my anxiety level, because with every trade...I already know the worst
> case
> scenerio(yes, with Bellies, I factor in a limit move or two against
> me)....
>
> Hey, if you know the worst case scenario and it is acceptable to
> you....and
> your methodology gives you an indication of direction...go for it.
>
> Hope this helps....Tom Stein comfut@xxxxxxx
Tom,
I do agree with the way you look at things. In fact, whenever I make an
entry the first thing I look at is the potential drawdown of a given
trade. Profits will take care of itself by trailing stops. But during
the process of formulating your potential drawdowns, do you incorporate
some forms of methods to catch such counter move of your original
strategy? Or you would just rather sit on the sideline for this one and
wait for the next turn of the market? Personally, I would setup two
trading strategies to make sure that I can participate of such move.
Have a Good One
Jeff Harteam
Hong Kong
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