Pekelo, regardless of the circumstances, it was a video worth seeing, if only to illustrate that trading can be messier than many people believe. Also, I suspect that PTJ has grown as a trader since that time, judging by size and reputation. All told, I have serious respect for the guy. And from what I gather, he seems to be a man of notable character, with his philanthropy being one example.
(Admittedly, I'd be more than a bit surprised if he still used Gann and Elliot stuff. But, hell, who knows. In any event, as he is often cited as having said, it's largely about risk control.)
If you study Gann, he is about risk control as well. His advice is to never risk more than 10% in any one trade. That is a max loss, tho. You should know if you are wrong well before then if you use all the rules.
If I am right, when he took that hit, he began nibbling rather than swinging for the fences, then when he was back where he needed to be, he bet the farm again, I trade exactly the same way. Just a guess of course.
Exactly. You go for the jugular only when you are at your best.
If you study Gann, he is about risk control as well. His advice is to never risk more than 10% in any one trade. That is a max loss, tho. You should know if you are wrong well before then if you use all the rules.
I think risking 10% of pre-entry capital on a single trade as a matter of course is insane, or right next to it. Also, if you "know you're wrong well before then if you use all the rules," then that implies you get out sooner. Which means you are not actually risking 10% after all. A bit circular, don't you think?
