At a very rudimentary level trading is all about locating areas where buyers or sellers were aggressive and then being prepared if/when price comes back to that level(s).
When either party is aggressive the DOM, especially on NQ, moves fast as hell.
“Smart money” knows that many retail traders eventually understand this basic, core principle of trading hence the infamous “stop hunt” There’s a reason failing traders are always crying that they lost money right before the move they were waiting for happens.
Oct 10, 2021 • 10 tweets • 2 min read
Recently heard a very successful trader say “all my trader friends are good losers”
What does that mean?
Well..good traders have sound risk management and care more about being profitable than being “right”
Good traders cut losers quickly and let winners ride.
/1
With good risk management a trader can take 10 losses in a row and still be up on the week.
There are some crazy successful traders with 30% win rates.
It’s simple…if you’re average loser is let’s say 5-10 points and you’re average winner is 75-100 points
/2
