true. Smaller stoplosses only means that you will have a lot of smaller losses in many trades that may have been winners.
Just goes to show you that often times the simpler the approach the better. I dont understand all the math, stats, and physics crap that is constantly being touted by a lot of traders on this board. Good money management and buying dips in bulls markets and selling rips in bears will make you a living. Thats what Eb has been doing his whole life and hes made a shitload of money.
One must remember that Eric is by training, an OIL MARKET trader, which means that he is a SPREAD trader. My guess is that 90% of his trading involves spreads, with only the occasional "outright" directional position trade.
This is a good post because it reveals one of the biggest mistakes that even "seasoned" traders make. THE TREND IS YOUR FRIEND. First, identify the trend and trade accordingly . . . with the trend. It will make life a helluva lot easier!
There are so many keys or variables to consistently making money that one is more important than the others depending upon the trading day, time of day, tools a trader has access to and events in a trader's personal life. The key is trying to determine what your own puzzle looks like and then put it all together in a workable trading plan. Simple for a few while difficult for most. Mark