Good trader vs Bad Trader 3
Bad trader: Places stops based on how much their willing to lose.
Good trader: Places stops based on the necessary implications for a market reversal.
Background:
Previous ceiling broken and there’s some chance it’ll go to new highs.
Market dips down, and comes back up, move stop up a tick:
Market makes new (relative) highs, move stop a tick below the most recent low. If the market touches my stop, then that’ll signal a reversal for me.
Now this is the real gamble (live):