Repeated by many legendary traders. Also LOL @ saying the market is wrong. Pride goeth before destruction. Take a break and get back on the horse.
Well, I don't entirely agree. A second entry is almost always a must to get a better average price. Why? I've been trading for 12 years, a basic rule I learned early on is: What you see is not. Why? Well, the price seems to be specially designed to fool day traders. When you see it (which goes up for example) Purchases. Very good. Like you, many other operators have thought the same. So the vast majority have placed a stop, say, below that 5-minute rising candle. The price in a great majority of occasions, will return to make the stops jump and then continue rising upwards leaving you with a fool's face. So: If you already know what will probably happen, why not add a position when the price returns to make the stops jump? 50% + 50% of the position I see quite successful. So, the stop, below the second entry.
Total lack of risk management and position sizing. The stockmarket is littered with victims who refuse to protect their capital. Option Sellers is a big example and had powers of attorney and control of $100 million I believe at the time their trade went south? I am sure there are numerous others. Timothy Sykes too, who ran a $10,000,000 hedge fund and had to close it with huge losses from one position which he did not unwind as it kept going down. His poor friend, lost most of that $10,000,000. I do not know how much skin, Timothy Sykes had on that position and all on one stock? He also, put all his eggs in one basket. There is no such thing as a sure thing except, death and taxes. If you do not have proper risk management and position sizing, you will blow up your account. Only question is when?
Actually you do. That's how you win. If you are dumber than the market, the market will chew you out until there is nothing left. Being prudent with your trade size and knowing when to quit and not go against the market when it's not warranted is being smarter than the market.