“In respect of military method, we have, firstly, Measurement; - TopicsExpress



          

“In respect of military method, we have, firstly, Measurement; secondly, Estimation of quantity; thirdly, Calculation; fourthly, Balancing of chances; fifthly, Victory.” When it comes to assessing a trade, you must have a pre-determined set of rules or system to help you evaluate (measure) a potential trade. Secondly, you must know your position sizing to buy the right number of contracts (quantity) based on the size of your capital. Thirdly, you must determine the cut loss and profit taking price and calculate the risk-reward ratio. Fourthly, you must know what is the probability of winning using your system in the current market condition. Lastly, pull the trigger, make the trade and wait for the market to decide if you are right or wrong.
Posted on: Mon, 21 Apr 2014 22:17:58 +0000

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