Aggressive money management saves the day! My last post on ELN, showed a text book False Bar Stochastic Buy with an aggressive profit level based off of Gann at 35.47. It rallied for two days and ultimatly failed the pattern. We reached a high of 35.88 which would have triggered our profit taking on July 21 and then reversed.
While the trade should have returned profits (with good money management), the pattern we were predicting failed. It's important to remember, as a trader you will be wrong on predicting patters and trade strategies will never be 100% accurate. Don't be afraid to take profits and move your stops as the trade goes in your favor.
Ron Wheeler
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