The Phantom Knows
I was introduced to Phantom of the Pits [pdf] from Zoomie on movethemarkets. It has definitely had a positive influence on my trading in the last few weeks (and I’ve only read about 20% of it so far). I am much more aggressive with cutting my losses very short:
The correct way to control positions is to only hold them once they prove to be correct. Let the market tell you your position is proven correct, but never let the market tell you that your position is wrong. You, as a good trader, must always be in command of knowing and telling yourself when your position is bad.
In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! Positions established must be reduced and removed until or unless the market proves the position correct!
