Why shouldn't we rely on others when trading?

19 בספט׳ 2021

Two traders can enter at the same price, one taking buys trade, the other one a sell trade. Only one can profit, right? Nope. The price can move both ways at different points of time from the initial entry, and both traders can profit. On the other hand, a desperate premature exit can cause both traders to lose. So, it is a matter of your own trading system. Remember, it doesn't matter if your edge is the total opposite of other ones as long as, you comply with your system. The entry, as well as the exit, should be well worked out. An exit strategy that will yield profits in the short term, can give heavy losses in the long term.

So, the exit strategy is quite important.