Traders must always seek to trade at inflection points. These are points at which the market pivots, or changes directions. This is necessary because it is at these points that the risk of loss is lowest. My primary tool for this is the Exponential Moving Average. Thus, with the smallest risk of loss, a trader can maximize the potential gain. I usually won't risk more than 4-6 ticks on any trade. If I must risk more than this, then I will sit out and wait for another opportunity.
We must also never lament a missed opportunity. If I miss a trade, then so what? I must have the faith that the market will present me with another opportunity tomorrow. Trust me. It will!
