A good trader consistently makes a net risk-adjusted profit (after all costs including their time) across changing markets.
There is no correct answer as to where to place stops. There are pros and cons to having them tighter and looser. IMV the most logical place for stops is "just the other side" of Support or Resistance. If the market moves against you, hopefully the functions of S or R will keep your stop from being hit. You expect S/R will keep you from being stopped out and you hope it will, of course. But when it fails, you have to recognize that and not give the trade the chance to move against you in a big way.
%% HERE are some more profitable patterns; some a bit complex but doable, factor in your own personality. 1] saw a punk\ , much meaner than talking snake media; he tried to shake my hand one day, but i told him ''stay away from me you punk!!. 2]I prefer politeness. The older gentleman that worked on my car said last month ''haven't seen you in a while''[Laugh a little, i told him my car was fine, but i realized he was like most friends+ referred more than a 200 day pattern] 3]He had a bunch of old telephone poles with 1/4 +/ copper solid wire on them; i told him,EleanorK180, once ''i'll sell that + give you 50%!!?? He said no[oh]; + said ''you sell it + keep it all'' [cash copper] 4]That gentleman maybe mature [ old] but not really bold 5]Best risk /reward is like Bill Gates giving away his email notes ; not that i agree with all his or Melinda's Proverbs application or everything healthwise they do. 6-777] One time the cash metals dealer asked me to do a little free work for him+ I wanted him to pay me but it was so little\ i just did it for free .Excellent+ among the best risk reward-payday someday. 8,888...] best risk reward is stuff like this , dont need a Bill Gates or MSFT Note Foundation to do it. Mrs Meyers snapped ''put your shopping cart up when through '']Like @ WMT or wherever you shop. NOT a stock tip , or business blow up LOL........
I am just an amateur retail, not a good trader. This is what ET taught me how to be a good trader: 1. Know the obvious 2. Practice prudent risk management 3. Study Al Brooks' books 4. Blow your accounts a few times 5. Don't trade the underlying, trade futures
This post references a S/R break that "runs"... What about the "false break", the prospect of which seems to freak out some traders... In my post (#32 on my rig) I expressed my stop plan for S/R breaks where the market "runs". What about the "false break"? Seems traders are overly concerned about them... but in reality they should look forward to them. It's often said, "the big boys" will "break S/R and gun the stops". That' true, sometimes they do. But that's actually a GOOD thing. Example from made-up numbers... let's say you buy support at ES 4200 and place your stop at 4195 or 4190. Then the support breaks to take out your stop... BUT instead of running much lower, reverses shortly to reclaim 4200. That's referred to as a "bear trap" and is actually a good buy signal. Vice versa on the false upside break. GL Scatty
%% Adding to the complexity; most people want honesty/ good technicals \ + manners, good manners {edit, enough people in business have good manners= rather basic LOL}
Literally read it 3 times. Is it like studying Gann and you have to be one of the chosen few to get it?