|
PureBytes Links
Trading Reference Links
|
> --=======6F6420A8=======
> rather than
> stops being placed according to a 2% risk, that they really should be
> placed "correctly" for your system, which is to say they should be at a
> point where it is "a violation of the reason why [you] wanted to get into
> the trade in the first place" (Tom Basso).
Agreed. I call it the "trade premise" - when price moves in such a manner
to invalidate the premise upon which the trade was based, its time to get
out. I'm a discretionary trader and set my stops using this approach.
Rather than "more room to breathe", I'd venture that a trade premise may
often be quite correct yet still lead to stop election and missed moves,
unless the time frame for the trade is adequate to the task and factored
into the trade premise. Risk evaluation and time frame go hand in hand...
Cheers
Mike
--
TrendVue.com
|