My view is that the "double bottom" on the daily is just a temporary respite and the downtrend continues. Either way though, the most important part of trading is controlling losses when wrong and letting winners run when right. This is more important than simple direction. This is where the rubber meets the road. I would tell you that the toughest part of trading is letting the winners run. Most traders will exit soon after an initial profit is shown. This is not the way to trade over the long haul. An undercapitalized trader, which includes most retail traders, will grab a quick profit in order to "grow" the account. It feels good to bank a win and have a high win ratio. This is unfortunately the undoing of most. A poster a while back said that with their R:R ratio of roughly 1 to 1 , that they only had to be right 58% percent of the time. --This is not the way to trade and grow wealth. --That individual is controlling losses for certain, but misses all the gains that a good trend can offer with perhaps the same risk. My view is that letting the winners run even with pullbacks is the better method and it is the only method that I employ on any timeframe. Good fortune to all--
In any event, I had a close stop on that post, so that if I was wrong, I would only lose no more than 2 percent of my dignity and credibility. (TLDC)
B1S2, I think another factor affecting people is how and where they start their trading career. For those start with very small stake and work it up, the only viable strategy available to them is scalping or riding several points at a time in order to build up their trading capital. Then in turn, the experience and training limited them from riding bigger trends.