After learning the first, it is important to learn the second else you will be a trader with a strategy that should work, but no profit to show for it. When you hear of traders who were successfully able flip small account sizes to big ones in a short time, it is not just because of their strategy alone, it is also due to understanding of how to maximize profits and minimize loss.
Quite true and that's where timing comes in handy because without proper timing, you won't be capable of getting the best profits or minimizing your losses. With a perfect timing, you can exit the market at the right time as such, you would have escaped the disaster that's ahead. Being optimistic isn't always the right way of thinking because some trades aren't going to change the direction that it was already on.
The loss will only increase and that's putting you at a more loss that's why just closing the trade is probably the right decision for some trades. You can make profits from other trade, it isn't a must for every trade that you're on to be profits for you
There’s always a worst regret that comes will later discovering that, a closed trade later boom and that’s why as a trader, it is always advised to only open a trade with only the amount they are able to lose to avoid regrets.
Remember in trading, there are several forms of trading which includes the scalping and for what strategy you people are referring to, should be considered more by scalpers who are only interested in earning every available profit and dollar that presents itself and avoiding every form of loss.
Scalpers will don’t mind closing a trade as long as it doesn’t go towards their prediction.
Having a strategy is one thing and knowing how to apply it is another thing... This is just beyond having the knowledge, if you don't follow the rules you will end up losing..The first rule you must follow is risk management, without it all your strategies and everything you know would be wasted.. risk management helps you cut down your losses and also maximizes your profits.. Don't use strategies that don't support risks management
The first role of a strategy is supposed to work on risk management and help maximize profit and the movement a strategy isn’t doing this, it should be checked and possibly changed.
As a trader, we understand that, losses are inevitable but the truth is that, the profits should always outweigh the losses to be considered a successful trader.
