All traders need:
• Exact rules for selecting your tracking portfolio.
• Exact rules for entering your trades at the right time.
• Exact rules for exiting your trades with a loss.
• Exact rules for exiting your trades with a profit.
• Exact rules for how much money to bet on each trade.
Do you have that? One reader responded:
I guess the answer is no. If we mean my own behaviours, I can explain my system: Find the trend, get a position. (About 10 stocks which are different industries) Put a loos-stop on lowest price of last 5 days. When loss-stop works, I wait trend or look other stocks. When stocks give profit I move loss-stops to on lowest price of new last 5 days. I don’t change loss-stops of loos-making stops. It is working in short terms. I haven’t start futures, I don’t open short positions. That’s why I miss downtrends. But this system is worse. It makes me look like day trader. Worse one.
Your system is a dead end. It’s not trend following.
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