Last week we discussed the importance of aligning oneself with the short term trend when swing trading. This week we're going to look at how that same short term trend filter can improve trade management. Before we jump in it's imperative to mention the importance of exits and why they tend to be the determinant of profits, rather than the entries.
It's no secret that new and amateur traders strive for the perfect entry. There's a common fallacy that to be successful in trading we need to select the right stock, sector, market or the right trade. The focus is on being right. As such trade selection or stock selection becomes the goal, as opposed to making money.