Chapter 5
Managing the Trade
IN THIS CHAPTER
Creating trading rules: The five-step plan
Blending trading rules with indicators yields trading style
Knowing when to take the money and run
Keeping losses under control
Finding out how to adjust positions
Nailing down the best trade management tool
Indicators are notoriously unreliable. The true secret to successful trading is to accept indicator unreliability and to take steps to offset that unreliability with disciplined trade management practices.
The indicator system doesn’t exist that always results in gains and never results in losses. You will take losses. Indicators are like the raw materials for baking a pie — the oven, the pie plate, the flour, the filling. Indicators are about price changes, or things. Trading rules are about the process of trading, involving you and your money. Managing the trade is like becoming a skilled ...
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