Einstein/Osho,
I suppose the answer lies in which chart are you trading off ? and what kind of trade are you formulating here ?
Is it a scalp ?
Intraday swing ?
Never enter a trade without a real solid basis for it and you better make sure it has potential to reach a target that is bigger than the risk.
Now, this does not mean that as the trade goes your way you can't adjust your stop to reduce risk, that's fine, but dont' get too close on say the common (moving stop to BE) because as price moves in waves room must be given so the bulls and bears can battle it out without taking you down because you got too close to the battlefield.
I do not believe in 1:1 risk trades and I don't like big stops unless the target surpasses that by a solid margin. With that said, what do you think is left ? Skill, the trader's skill, the experience, the confidence.
Naturally, this lowers my accuracy, but since I always start small and I shoot for the moon, that is quite alright.
Forget accuracy, just be brilliant and greedy and it will come to you. Oh and don't forget to always protect your capital, always, at all times. If the play requires a slightly larger stops, is it worth the risk ? will the target make up for it ?
If not, stay out, drink coke and eat popcorn, let them battle it out as you work on your patience and market reading skills.
Anek
