Yirbu wrote:
I see your point and it would be great if I could minimise my losses. I just don't see how these trades would have benefitted. Obviously the second trade, a cost trade, wouldn't have been a full loss. But the profit trades would have made less not so?
For slightly longer term trades I do see a huge advantage and I think I can make a variation of this beneficial. But why 6ths? And not 5ths or 7ths?
In this case, I just should not have walked away from my terminal. Option C.
Ah, the "wouldn't I make more money if I bet larger" question. You're assuming that you are going to make money right out of the gate;
making money is not just maximizing gains, but also minimizing risk.
You minimize your losses by betting smaller when you are disadvantaged and betting larger when you have more information and momentum.
You can use 4ths or 5ths or 6ths or 8ths
1 + 1
2 + 2 == 4
3 + 3 == 6
4 + 4 == 8
& we are not scaling to max in the same trade, so it doesn't matter if you are trading a 1 minute or a daily chart.
Why would you bet large if you are not making money? & if you are making money then you can afford to bet larger.
You're first entry you are guessing, you're second entry you are seeing:
sort of like putting a dot on a chart and measuring whether price is up or down from the first dot.
So, yes, you could make more money if you bet a million dollars, but that doesn't mean that you are on your way to riches.