Consistency

One of the key components of CP is the Consistency. It's OK to have a few losing trades but a high win rate with proper risk management for the losses provides a mathematical edge in your trading plan.

Having tight stops is not the way I do it. Rather, doubling down and even tripling down in a trade where the entry qualifications are still valid allows the basis cost of the entire position to be reduced and facilitates the high win rate and consistent profitability.

Today's picture is the third day in a row with similar trades although each has a different context. However, they are all trades that trade the pullback-thrust of the trend of the chart in which they appear.

The initial entry was early but identifies the Fav Fib target below. It allowed a doubling down at a better price which resulted in a much larger profit on the trade. Initial entry may be 25 to 50 percent of the position with the balance entered on the double/triple down.

Just getting the trade on is what important. If you don't have a trade on then you cannot get a result. Overthinking kills consistency. Do the testing and rely on the metrics you discover. You MUST expect and accept losing trades. It only takes one strong hand to take the position opposite to yours to make a trade a loser but if your testing shows that you are profitable 75% of the time and green every week, just take the trade.