Know when to Hold'em and Know when to Fold'em

Kenny said it all. I guess life and trading is all about timing.

I  posted a link to a Mark Douglas video a few days ago that stressed the importance of ACCEPTING THE RISK of your Trading Plan. If you're not taking or holding your trades then you are deep down NOT accepting the risk. It's important to know when to hold'em and know when to fold'em and it's difficult to know that without having done your homework.

The requirement for me is BELIEF. I can put my trades on and manage them because I BELIEVE, and I believe because I have back tested. Because I have back tested I can accept the risk, because I KNOW that I will be profitable over time. This is a 3 cornered chair; Testing, Belief and Acceptance. This makes for a stable trader's profile.

I'm working on some posts that show more of the maths that are involved in CP. There are a number of things to decide in order to create the necessary numbers. I'm hoping to have the first post of a series ready by tomorrow.

Today I tweeted:

$ES_F, My cup runeth over, nother Gap Trade setting up not much Res above so need to watch Order Flow & momo

I put my money where my tweet was and went short about 15 minutes before the RTH open @1278.25. This is one of the trades we spend time on in the course. The DVDs have me trading a couple of them live and shows how to handle this trade, even when it doesn't quite go as planned. See the vid below.