$UBER - Scaling Down as a Risk and Emotional Managing Mechanism
Just updating this idea :)
One good idea to manage emotions and hedge against the risk of losing back our profits to the market is to scale down once a logically placed target is hit.
Pursuant to our volume profile analysis, although this market might as well keep on climbing, some bearish pressure is likely to step in at this level (is sufficient for a reversal, no one knows and it depends on the state of the general market as well).
For this reason, at this moment. the odds are not slightly imbalanced and not any longer at full force on our side, the bulls.
Take partial profits , scale down and one of 2 things happen:
1. The market moves against you and you remain relatively happy since you have already locked in some profits.
2. The market keeps on climbing and you remain relatively happy because you are still holding a long position.
REMEMBER: Drawing lines on a chart means nothing if you do not manage risk. Nothing.
Cheers,
Tenacious Tribe - Quantified Trading Strategies
One good idea to manage emotions and hedge against the risk of losing back our profits to the market is to scale down once a logically placed target is hit.
Pursuant to our volume profile analysis, although this market might as well keep on climbing, some bearish pressure is likely to step in at this level (is sufficient for a reversal, no one knows and it depends on the state of the general market as well).
For this reason, at this moment. the odds are not slightly imbalanced and not any longer at full force on our side, the bulls.
Take partial profits , scale down and one of 2 things happen:
1. The market moves against you and you remain relatively happy since you have already locked in some profits.
2. The market keeps on climbing and you remain relatively happy because you are still holding a long position.
REMEMBER: Drawing lines on a chart means nothing if you do not manage risk. Nothing.
Cheers,
Tenacious Tribe - Quantified Trading Strategies
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