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Taking money out of the market ...
"Hey Joe! I have a problem with not taking money out of the market when it is there for the taking. I seem to think that somehow it is not mine—that it doesn’t really belong to me. What should I do?"
Losers think the open equity they take home on overnight trades belongs to the market or someone else. The winner views open equity as his money, temporarily loaned to the markets for a greater return. The initial trade closing price is not the only reference point for open equity. The trader is also theoretically long from entry to the highest open equity tick since the trade began. Think about this.
What you have really made in an upward move is from where you entered to the highest point prices have moved. But how much of that did you actually get? And what you have really made in a downward move if from where you entered to the lowest point prices have moved.
If you could catch the entire move it would be great, but to the extent that you did not get it all, you have come up against the Law of Diminishing Returns.
All the best in your trading,
Joe Ross
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"Get paid to trade!" (Joe Ross)
"Trade what you see, not what you think!" (Joe Ross)
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