So, if in any case, we risk something, then the conclusion is this: the only thing we can do is try our best to increase the PROBABILITY of a positive outcome. Now let’s see what we have done above:
- We figured out the size of the castle, which needs to be covered. Here we try to reduce efforts to a minimum and cover it with a minimum number of transactions. Just out of sanity, such as a plaster in all senses, it is better to tear off in one motion than in several.
- Found a trading strategy. A clear entry point gives us a systematic way of thinking and reduces psychological stress. We are focused. After all, we know for sure under what conditions we enter and under what conditions we exit. All this increases the likelihood of “sitting out” the desired amount of movement and not “jumping” ahead of time.
- Understood the types of price movement. Waiting for the desired type along with the input signal, we increase the likelihood of achieving our take profit. So the probability of getting out of the castle.
Note that this approach is complex. All items are important. It will be a mistake to use, for example, only the 3rd item. Because there will be no certainty that globally there is a potential for movement of the desired size. If you use only paragraph 2, the probability of achieving profit is reduced. If you use only point 1, you run the risk of getting bogged down in constant emotional inputs and outputs, not having sat until you completely leave the castle.
Only such a cumulative approach taken together can give an increased likelihood of success in this difficult enterprise.
That’s all, actually! I hope the information in this article will help you avoid mistakes, the understanding of which, by itself, has been gained through bitter experience. Other options for leaving the castle are variations of the basis described above. However, if you do not agree, and you have an example of a better option, I will be grateful if you tell me about it in the comments.