Trend Following Probabilities
There is no certainty when we trend follow. The fact is all we are dealing with is possibilities & probabilities. One does not need a crystal ball to succeed in trend following. One needs to accept the uncertainty. However when we have a complete trading plan…when we see a situation that is part of our plan ( breakout, retracement or pattern) one has to accept the risk of that trade. This is the concept of only risking small amounts of money on any particular trade & making your money over a long series of trades. Realize that you do not have to know what will happen next.
Accept the complete possibility of a loss on this upcoming trade event though it hits your threshold of a pattern or edge. Have a plan for taking profits…ie prior lows or highs or supports or resistances….and simply let the odds work over the next 1,000 trades. Do not jump around. All edges and strategies will have losses. There is no way to prevent them. Embrace your losses…if you try to prevent them…either you never trade or will end up making large mistakes..
Past performance is not indicative of future performance