There is unlimited potential for profit and loss in the market. Even though there is a belief out there that because of this limitlessness, the market is like gambling. This not even close to the market environment. With any gambling game you will always know how much you want to lose or win each time you play. You may even know the mathematical odds of either possibility.

In any trade you never know how far prices will keep going from any given entry point. So, if you get into a losing trade the market could be moving farther and farther away from your entry point, which can paralyze you in staying rational. Traders at this juncture usually only imagine that the market will turn back to their way.  Eventually the trader exits the position never imagining he or she could have allowed such a massive loss.

So, release yourself from the notion that some of your trades has the potential to fulfill all your dreams. Every trade should have a rigid risk management Stop-Loss. At ETF Trade Advisor we are very rigid with our Stop prices for all our timing system positions.