When you’re losing…
… you downsize your position.
To save your corpus.
You lower the risk.
Is risk quantifiable?
Risk is no abstract entity without a body.
In a trade, your risk is defined by your stop to stack-size ratio and the size of your one position.
When you’re losing, you either lower the magnitude of your stop, or lower the quantity of your one position.
Till your corpus crosses par and then some.
At par, you trade normal.
What is normal?
Depends on you.
What is normal for you?
That’s what goes.
Why the caution when below par?
Lots works against you at this time.
Sheer math for example. Downsizing sets this right.
Whoever’s got a remedy for those is king already.
Your body-chemistry is affected. You’re sluggish. More prone to error. Nobody’s got a remedy for you, except you. Wait for your body to heal before trying out that perfect cover-drive, or what have you.
Winning or losing in the markets depends a lot upon psychology, chronology, systems, strategy, application and adaptation of style.
I like to call this “getting one’s meta-game together”.
Let’s go people.
Let’s get our meta-games together.
Then we can scale it up.