Knife Catching

It’s important for traders to understand that not every trade will win. It’s pretty silly to try to eliminate losses. Instead, focus on keeping losses small, and keeping winners big. That’s why, in our eotpro screenshot advertisements, we don’t mind showing losses. In fact, I consider it to be the best kind of ad possible, when we show how our indicators work together to keep losses small.

Here we have two long signals from Barb’s Reversal indicator. Since it’s trying to catch reversals, there is always a danger that you step right in the way of a strong trend. That’s exactly what happened yesterday. But, with Bonnie’s Bars to get you out, you lost a total of 4 points, even though we are on huge bars (10k share bars). Consider that, the day before, Barb’s Reversal caught an 8 point winner, and you can see the secret to winning the trading game.

Big wins and Small Losses. Drill that into your head, until you mumble it in your sleep!