Came across a textbook short setup on GBPCHF on the 1H recently. The price action was within a defined range, structure was bearish, and it was signaling a potential entry.
However, the trade was a pass. Why? The stop loss was simply too wide for my account size, creating a sub-optimal risk-to-reward ratio that fell below my personal 1:2 minimum rule.
This is a reminder that a good technical setup is only one part of the equation. The real discipline is in the money management—calculating the position size and risk before ever entering a trade. Sometimes, the best trade is the one you don't take.
However, the trade was a pass. Why? The stop loss was simply too wide for my account size, creating a sub-optimal risk-to-reward ratio that fell below my personal 1:2 minimum rule.
This is a reminder that a good technical setup is only one part of the equation. The real discipline is in the money management—calculating the position size and risk before ever entering a trade. Sometimes, the best trade is the one you don't take.
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.