821 - Fishing

So now I have open positions, the next thing I have to start learning is how to play with it. Basically, the main idea is to

• cut your losses short, let your profits run

How I see it is like fishing. Your have to monitor every trade, and move the Stop Loss with how the trade progresses. The key to it is to set the Stop Loss in a sweet spot. It is a balance between

• Losing trade, quit it early
• Winning trade, the Stop Loss should have enough allowance for volatility

So it is something like Fishing, you have to strike a good balance between not snapping the line, and also reeling in the Big Catch.

Always have the mentality that each trade has the potential to be a massive win, and learn to Stop it skillfully for a realistic profit.

The one theory to remember when fishing is :

See each trade as a potential big win, and place the Stop somewhere you do not think it will go.