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The Math Behind Taking the Same Trade Three Times
by Blake Young
Hey trader,
After I take a loss, I move on…most of the time. That's what you're supposed to do.
But sometimes that can leave money on the table.
So, when walking away is discipline and when is it an overreaction to a single loss?
This could be the single most valuable lesson you can learn in your trading career.
During Monday's 10% Club session, crude oil broke out overnight and pulled back to the zero level on the distribution chart.
I went long two micros at 103.35 with a stop at 103.08. It stopped out for a $54 loss.
The setup was gone. The trade was not.
Crude defended that zero level, and the 104.80 target had already been reached earlier that morning.
The destination was proven. The institutional support was still intact. So I entered again.
That one stopped out too. And I went back a third time.
The third entry risked $112 to make $428.
At nearly 4-to-1, I only needed one winner out of five attempts to come out ahead.
That is not revenge trading.
That is a repeatable edge at a defended level with position sizing that keeps total risk in check.
Here's how you can tell the difference.
This morning's session produced three separate crude oil entries off the zero level. The methodology behind every one of those trades is the subject of this week's Dark Wires webinar.
The same signal hierarchy. The same stop management rules. The same position sizing discipline that kept risk in check across a chaotic tape.
Thursday, April 2 at 1:00 PM Eastern.
Click here to add the Dark Wires webinar to your calendar.
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