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Originally Posted by Habib
Strange as it may sound but it works quite well in ranging markets which is what the markets are most of the time. OK the range can be quite large but that is where proper money management comes into play.
Going against the short-term trend not over-committing generally helps.
Problem with this approach of sticking to one wrong position is that it can wipe you off eventually but so can falling debris the sky.
Think 10 times before you enter a position wait for the right price to come your way (never chase a running train) then stick with it unless something drastically goes wrong in which case cut your loser at the nearest catchable point of the new confirmed range. Of course you have to keep weighing the fundas to make an assessment of if the breakout against you is genuine or not.
I have been succesful with this strategy so far but will it keep working for me under different market environments is yet to be seen.  |
Thanks you Cut your winners hold your losers