Cutting winners and holding losers: one habit, not two
They look like opposite errors. They come from the same source, they compound in the same direction, and one fix addresses both.
Ratios, R-multiples and the arithmetic that links win rate to profitability.
6 articles
They look like opposite errors. They come from the same source, they compound in the same direction, and one fix addresses both.
The target was 60 pips. At 55 you decided to hold for 90. How a plan quietly becomes a hope, and the exits that prevent it.
The asymmetry that makes traders cut winners early and hold losers long. Where it comes from, and the structural fixes that work better than trying to feel differently.
A setup without a target is half a trade. How the measured move works, why targets must exist before entry, and what to do when the projection is unreachable.
Buying a trend at its high is the most common way to be right about direction and lose money anyway. Why the entry price changes everything.
R-multiples make strategies comparable and journals honest — but only when the reward is as real as the risk. Where the ratio genuinely helps, and the two ways it gets gamed.
Cognitive biasTrading emotionsDisciplineChart patternsMarket structureTrendRisk managementTrading journal