Supposing there was a way of ramping up the cash you earn from your winners whilst correspondingly cutting your losses even further?
Does that sound good?
I think so!
But – and there is always a but with these things – whatever technique we employ in the markets there will be some sequences of profits and losses which really suit that technique, and others that make us pay for employing it.
It is important to realise that once you apply rigid discipline to your trading by using a system, the way the market behaves directly affects your profits and losses. In this fashion the market can be seen as a generator of random sequences and, over time, it will run through the full range of such sequences. This ...