Lesson in Risk Management

We focus on bullish patterns, and sometimes they fail, Kate trigger through $25.50 ended the days at highs and look great when we got in. As you know we trail our stops by the prior days lows.

The next day, pushes through to a new high and ends the days at lows, could not have been a more bearish sign, and we got stopped out the next day below $25 at $24.99.

We lost $.50 per 100 shares on this trade. Trades fail all the time, and when that happens we focus on losing small. We as traders, do not have to sit and rot in a position that is clearly not working.

Remember trades will fail all the time, learn to loose small and trail the winners !


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