hi, just wanted to share a couple of thought on management, mainly for new members.
in my eyes, there are two categories of management: simple (fixed RR) and more complex (variations of trailing).
Both have positive and negative sides.
In my eyes, as a very very subjective opinion, simple fixed RR system will be better for most people. Or ok, I'll not speak for most, but for me definitely.
Why so:
incredible simplicity, cause you just need to test to see how much your trades usually run + create b.e. rule, and you're good to go
3-5RR are usually best for fixed RR systems
do not underrestimate the energy that goes into making decisions while managing and waiting, watching for the trade to develop into higher RR's. With fixed you don't have this - you just go b.e. and then you can close the terminal, and go away if needed. However yes, advanced experienced consistent traders would trail almost with no extra emotions, cause it's usually more mechanical. With that said, for many relatevely new traders, trailing could be extra emotional.
with fixed, you'll have less chances to become emotional, because of many reasons, for me personally fixed RR system gives a sense of accomplishment on every trade, while with managing I'm constantly thinking how can I manage longer better etc. So I'm rarely satisfied when I'm getting stopped out on trail, cause I'm still "stopped out", while on fixed I have a sense of good work done. I know it's weird, but it's personal experience
I could continue, but I guess the general guideline is there.
My main message is that TP can be a very simple fixed 3 or 4RR and that would be more than enough and easier for most people's mind
have a good weekend.
in my eyes, there are two categories of management: simple (fixed RR) and more complex (variations of trailing).
Both have positive and negative sides.
In my eyes, as a very very subjective opinion, simple fixed RR system will be better for most people. Or ok, I'll not speak for most, but for me definitely.
Why so:
incredible simplicity, cause you just need to test to see how much your trades usually run + create b.e. rule, and you're good to go
3-5RR are usually best for fixed RR systems
do not underrestimate the energy that goes into making decisions while managing and waiting, watching for the trade to develop into higher RR's. With fixed you don't have this - you just go b.e. and then you can close the terminal, and go away if needed. However yes, advanced experienced consistent traders would trail almost with no extra emotions, cause it's usually more mechanical. With that said, for many relatevely new traders, trailing could be extra emotional.
with fixed, you'll have less chances to become emotional, because of many reasons, for me personally fixed RR system gives a sense of accomplishment on every trade, while with managing I'm constantly thinking how can I manage longer better etc. So I'm rarely satisfied when I'm getting stopped out on trail, cause I'm still "stopped out", while on fixed I have a sense of good work done. I know it's weird, but it's personal experience
I could continue, but I guess the general guideline is there.
My main message is that TP can be a very simple fixed 3 or 4RR and that would be more than enough and easier for most people's mind
have a good weekend.