Thanks. My only guess is these posters are video game addicted adult children who demand instant gratification and play with Xtrader in over leveraged, scared money accounts. But then again, this is ET, the land of no losing traders.
The truth about trading, join us or perish http://www.elitetrader.com/vb/showthread.php?threadid=259473 This is just one reason I crack up when I hear the "chart readers" claim their nonsense. Read the truth from real traders who make their living in the markets. Either wake up or be forever struggling in a no win game. No more mr.nice guy
It is not my trade, therefore, a better question would be, "How much should the reward be?". Again, not my trade but as an absolute minimum 120 ym ticks, without having any information regarding the statistical accuracy of the setup, which is not something I would generally answer without, but since you asked....
Depends on time horizon of the trader. My current statistical "heat limit" is 8 ticks, simply no reason to hold losing trades for more. But that's day trading. Not the matter of being scared or confident, just pure logic. Benefits of day trading are ability to use much higher leverage and much smaller price risk. In my view one is over-leveraged only if she/he allows losing trades go beyond the logically defined optimal risk. Someone who doesn't adhere to a sane stop-loss (mental or hard, doesn't matter) being in a position on a cash no leverage account may just as well be way "over-leveraged".
Holding shorts. Price Drivers remain at strong bearish bias negative 7. 100% accuracy thus far in 2013 in the price drivers. I realize this is impossible to maintain, but I'm thanking my lucky stars so far this year!
I disagree. Being over leveraged or scared means you can't allow the ATR of the market to fluctuate without being prematurely stopped out