+1James1st wrote:'If PRICE contains ALL the data that is necessary to drive movement, then however strong your conviction that you are trading in the right direction (or that the odds will eventually conform to your will), you are destined to fail unless your management plan includes not just a willingness but an expectation that you will often have to deploy an appropriate stop loss.'
Before a trader enters the market, IMHO they should be able to answer the following questions:
A. Under what circumstances will I enter the market?
B. Under what circumstances will I exit the market?
C. How much am I willing to risk per trade?
If they can't answer those questions, then there's a good chance that they are gambling rather than trading systemically with an edge.
Jeff