Today's Quote: “Patience is the key to paradise." - Proverb.

The first method of managing trades we are going to review may surprise you. The reason is because the method is to ‘not’ manage the trade at all. Simply let it go to your target or hit your stop and never interfere. While this sounds to simple and like just a ‘starting point’ to begin this conversation, it is actually much more than that. This method of ‘all or nothing’ trading produces better results for an estimated 80% of traders than what they are currently doing.

Naturally your results may differ considerably depending upon what style you like to trade. However if you would simply review your last 10-50 trades and rework the results pretending you let every trade hit either the original stop or the original target, you can see the results for yourself. The goal is to discover if your current management policies can even beat the ‘benchmark’ of all or nothing.

It is not the case that all or nothing is necessarily the best method of managing. It is jest saying that it is better than what 80% of the traders out there currently do. The reason goes back to what was discussed yesterday. The fear of losing profits has most traders over managing positions to their detriment. Take the time to rework your results and see if you are a member of the 80%. You might be surprised. By the way, one out of ten of those people actually had results so dramatically improved that it “changed them” forever.