8/4/2010This chart might seem different that most charts you see, why? Because if you look we are actually adding contracts to the wining trade. Most traders will want to add contracts to losing trades to get a better average entry price. In our opinion this is the wrong way to add contracts and the wrong way to trade. Why make a losing trade worse?
Today range was not that great so we exited way before our actual bigger target. The reason we exited early was the fact the bigger time frame is making a wedge (or contracting) so we do not want to hold for a home run when the odds are saying otherwise. We took the profits at the smaller wave target and you can see it was a good spot to exit.
Adding to winning trades can get you much better bottom line results. It is just having enough confidence in the direction and in yourself to stick with the trade. There were actually a counter trend trade that was good for 3-4 points today but we did not take it.
Happy Trading,
www.eMiniSchool.com
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