the lesson I have to learn?” “What do I need to do to change?”
He should never do himself the disservice of looking back at
chart patterns with hindsight and saying “I should have seen
It is not an issue of what he sees or doesn’t see; it is
always an issue of how a trader manages the trade once he is in
it. Trade management is a process of defining an initial risk
level and then trailing a stop from there or placing orders to exit
the position, whether with a profit or a loss. A trader must rely
on his best judgment at the time a trade is put on and managed.
With experience, he can learn to recognize the behavioral patterns
he exhibits when his judgment may not be 100 percent, the
times he is prone to drop his guard and the market demons jump
up and bite him. And then, over time, a trader’s bottom line can
improve as he makes fewer and fewer unforced errors!
