Rent your stocks, do not marry them

Stocks/options/futures are instruments/tools you rent to express your short term view and operate your business in order to make money.

Stick to your trading time frame. do not jump between time frame. if you are wrong, get out. Do not get trapped in a short term trade that moved against you and let it become a long-term position.

 

Frequently a trade has positive expectancy at entry, say 70-30. However situation can change, and a trade can quickly move against you. Frequently a trader is not willing to cut loss when they are small, and instead incurs large losses while holding on to loss only to surrender / throw hands in the air after accumulating large losses. Yet when trades are in their favor, they book small gains (when they reach your traget). If you trade this way, then over long term, you lose money even if statistically you have the edge upon entry. The edge is only there to be harvested when you truncate both large right tail and left tail in the price distribution.

 

just my 2c