Thread by @MarkRitchie_II

This is a great question and worth getting more nuanced on, specifically what I mean by 'finance a bigger hold'.

1. At it's most basic I mean time/structure the trade in such a way that you are able to extract a multiple of initial risk that then gives you options...

https://twitter.com/friobzero/status/1661064985231998992

2. In this case using today's example lets say I buy through the pivot and use a tight stop 70$ by measuring just to new highs that would be more than a 4:1 to new highs (300$ to new highs/70=4.28). So I can sell a portion (i'd prefer to scale out) between 2-4x initial risk...

on half the position. Now in my mind the trade is completely de-risked and i didn't even have to have the market breakout of the base yet. It's all good options from here which is where you want to be, imagine where worst case you lose nothing and only have upside...

As I see it I would then do
a. move initial stop to even and protect minimum 1-2R gain on the trade (as if I took avg at 2-4r, stopped at even on the rest.)
b. similar to above but be less conservative and move stop to $ breakeven on the trade overall, use booked $ adjust stop

c. wait and see how the trade continues to unfold relative to how you are seeing the ball and look to potentially trade around or add/reduce to the position accordingly as I try and play it for a larger move.

Normally I would lean towards a. or c. but the reality is trading in my opinion is an art that has scientific/statistical boundaries. Financing portions of gains isn't something I always do, but trading that way will always reduce the volatility in your equity curve...

Even more important though is the idea of putting you in a 'good psychological' position when you know worst case you don't lose which should increase your ability to stay objective and disciplined as you watch how the market unfolds.