Let me give you an example from just the past two days: we wanted to be short eur/usd if it went under 1.0626 as we were looking for 1.0111 in that pair. It broke hard the other day under 1.0626 down to 1.0520. We could have stayed with it since we were looking for much lower prices. But what we did was to sell 50% of our position down there and put in an order to scratch the rest, thereby locking in a nice profit, and playing with house money should it continue our way. But as markets will do, it reversed and went back up to 1.0626 taking us out of our remaining position at break even. Next it printed 1.0627 and we reversed our idea and got long for the run up to 1.0675 where we did the same thing...sold 1/2, locked in a profit, and have the remaining half if it continues to 1.0720 and above. That's how you do it. You can be wrong but make money if you are agile and open minded.
This is just one of the critical characteristics you need if you are going to trade against the best. Right now I coach traders around the world from the U.S to Canada to the UK to India and Argentina. We work on techniques like this on a daily basis until they become second nature. Most of the techniques I learned from trading in the pits as a member of the Chicago Board of Trade and many from 10 years of on line trading after that.
At Black Belt Trading....Making Money Is All That Counts