winston wrote:millionairemind wrote: If he is always taking losses and fast profits, very soon he will be washed out of the game. His profits cannot cover his losses.
The rule is in MM's signature.
Three good trades can cover Seven losses, as long as you cut quickly on the bad trades and let the profit RUN on the good trades ..
Different market situation calls for a tweak in strategy. In a sideways market like now, how many +40% can you get? The possibility of -10% is high if your enteries are not good. Basically 80% of the time he is cutting losses, I don't think he has any winner to ride.
What would you do in a no clear direction market? For traders, I suggest standing on the sidelines first or only risk less than 20% of your total capital. Money management is there, but the Method is not right.