Two popular adages of trading include:
-Cut your losers
-Let your winners run
there's obviously a balance between each which must be achieved, but focusing just on'cut your winners' with regard of how that impacts profit potential, how does one go about ensuring that losses will be as little as possible?
I'm torn between 2 approaches:
1- Place your stop in and leave it
two - Move your stop to breakeven
Clearly there's an 3rd option that's to track your stop, but I have not been a lover of this.
Do any info wizards have a response to which can be the very best at controlling losses?
Recall: Let's look at which will be the most profitable, but rather that one controls loss the ideal.