Talking Points:
• The saying "I'd rather make money than be right" is practical, but shouldn't be a part of our strategy
• A successful strategy should lead us to placing successful trades over time, avoiding 'luck'
• When a position moves in our favor but not for the reasons we expected, it is better to cut
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The saying "I'd rather make money rather then be 'right'" is an enlightened adage for traders. It keeps us from looking beyond our strategy and trading. However, we shouldn't mistake that saying for the similar "I'd rather be lucky than good". Luck may serve us for a single trade or even a single theme. However, a strategy over time that has to rely on luck is one destined to fail. When we are trading, and the fundamental and/or technical backing for a position falls apart, the sensible thing to do would be to exit the setup and look for another with better prospects. That may not be difficult to if the trade is already down or even if it is flat. However, those that do not fully follow there process often have a hard time making that call when the 'lucky' trade is in the green. We discuss the importance of following our strategy even after the trade is placed in today's Strategy Video.
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