Damn, you folks have me confused now. I trade this fading 10 point moves off of reaction lows or highs. I don't know how to make it any simpler. Hint, 50% retracements within the 10 point move are your friend. This 10 point target that jag is doing is probably going to put his win rate around 20%. I hope he keeps stats on how far profitable the trade went pointwise before he gets stopped out. This will show why scaling out is such an important concept in this style of trading. PS. RULE OF 10 DOES NOT WORK ! If it did then we would be lower than 1281.5 right now.
#5. Posting the "why " is more beneficial than posting the action. Actually my favorite book is The Disciplined Trader, followed by Pitbull.
You only need 3 to 1 if you lose more than you win. Get your average to .75 and 1 to 1 will set you free.
Tortoise... Try this for money management.....stop for the day when you achieve a profit in any amount...so you would be done for today....and come back to take the signals tomorrow.... That simple "magical" rule will do wonders to your account as it prevents overtrading the system. Overtrading is the killer of daytraders. caveat: you need at least a 50/50 system for this rule to work effectively.
If you apply that same simple concept to rule of 10 trades then the end result gets even better as your winning precentage climbs. Of of the most important rules in trading is never let a win turn into a loss.