from many basic books.
The lively book Jnnumeracy by John Allen Paulos is an excellent primeron the concepts of probability. Paulos describes being told by a seeminglyintelligent person at a cocktail party: “If the chance of rain is 50 percent onSaturday and 50 percent on Sunday, then it is 100 percent certain it will be arainy weekend.” Someone who understands so little about probability is sureto lose money trading. You owe it to yourself to develop a basic grasp ofmathematical concepts involved in trading.
Ralph Vince begins his important book Portfolio Management Formulaswith a delightful paragraph: “Toss a coin in the air. For an instant you experi-ence one of the most fascinating paradoxes of nature — the random process.While the coin is in the air there is no way to tell for certain whether it willland heads or tails. Yet over many tosses the outcome can be reasonably pre-dicted.”
Mathematical expectation is an important concept for traders. It is calledthe player’s edge (a positive expectation) or the house advantage (a negativeexpectation), depending on who the odds in a game favor. If you and I flip acoin, neither of us has an edge—each has a 50 percent chance of winning.But if you flip a coin in a casino that skims 10 percent from every pot, youwill win only 90 cents for every dollar you lose. This “house advantage” cre-47. MONEY MANAGEMENT 257
ates a negative mathematical expectation for you. No system for moneymanagement can beat a negative expectation game over a period of time.
A Positive Expectation
If you know how to count cards in blackjack, you can have an edge against acasino (unless they detect you and throw you out. Casinos love drunk gam-blers but hate card counters). An edge lets you win more often than you loseover a period of time. Good money management can help you make moremoney from your edge and minimize losses. Without an edge, you might aswell give money to charity. In trading, the edge comes from a system thatdelivers greater profits than losses, slippage, and commissions. No moneymanagement method can rescue a bad trading system.
You can win only if you trade with a positive mathematical expectation —a sensible trading system. Trading on hunches leads to disasters. Manytraders act like drunks wandering through a casino, going from game togame. Slippage and commissions destroy those who overtrade.
The best trading systems are crude and robust. They are made of a fewelements. The more complex the systems, the more elements that can break.Traders love to optimize their systems using past data. The trouble is, yourbroker won’t let you trade the past. Markets change, and the ideal parametersfrom the past may be no good today. Try to de-optimize your systeminstead— check how it would have performed under bad conditions. A robustsystem holds up well when markets change. It is likely to beat a heavily opti-mized system in real world trading.
Finally, when you develop a good system, don’t mess with it. Designanother one if you like to tinker. As Robert Prechter put it: “Most traderstake a good system and destroy it by trying to make it into a perfect system.”Once you have your trading system, it is time to set the rules for moneymanagement.
47. MONEY MANAGEMENT
Suppose you and I bet a penny on a coin flip: Tails, you win, heads, you lose.Suppose you have $10 of risk capital and I have $1. Even though I have lessmoney, I have little to fear—it would take a string of 100 losses to wipe meout. We can play for a long time, unless two brokers get between us anddrain our capital by commissions and slippage.258 RISK MANAGEMENT
The odds will dramatically change if you and I raise our bet to a quarter. IfI have only $1, then a string of only four losses will destroy me. If you have$10, you can afford to lose a quarter 40 times in a row. A series of fourlosses is likely to come much sooner than forty. All other factors beingequal, the poorer of two traders is the first to go broke.
Most amateurs think that “other factors” are far from equal. They considerthemselves brighter than the rest of us. The trading industry works hard toreinforce that delusion, telling traders that winners get the money lost bylosers. They try to hide the fact that trading is a minus-sum game (seeSection 3). Cocky amateurs take wild risks, producing commissions for bro-kers and profits for floor traders. When they blow themselves out of the mar-ket, new suckers come in because hope springs eternal.
Survival First
The first goal of money management is to ensure survival. You need to avoidrisks that can put you out of business. The second goal is to eam a steadyrate of return, and the third goal is to earn high returns— but survival comesfirst.
“Do not risk thy whole wad” is the first rule of trading. Losers violate itby betting too much on a single trade. They continue to trade the same oreven a bigger size during a losing streak. Most losers go bust trying to tradetheir way out of a hole. Good money management can keep you out of thehole in the first place.
The deeper you fall, the more slippery your hole. If you lose 10 percent,you need to gain 11 percent to recoup that loss, but if you lose 20 percent,you need to gain 25 percent to come back. If you lose 40 percent, you needto make a whopping 67 percent, and if you lose 50 percent, you need tomake 100 percent simply to recover. While losses grow arithmetically, theprofits that are required to recoup them increase geometrically.
You have to know in advance how much you can lose— when and at whatlevel you will cut your loss. Professionals tend to run as soon as they smelltrouble and re-enter the market when they see fit. Amateurs hang on andhope.
Get Rich Slowly
An amateur trying to get rich quick is like a monkey out on a thin branch. Hereaches for a ripe fruit but crashes when the branch breaks under his weight.47, MONEY MANAGEMENT 259
Institutional traders as a group tend to be more successful than privatetraders. They owe it to their bosses, who enforce discipline (See Section 14).If a trader loses more than his limit on a single trade, he is fired for insubor-dination. If he loses his monthly limit, his trading privileges are suspendedfor the rest of the month and he becomes a gofer, fetching other traders cof-fee. If he loses his monthly limit several times in a row, the company eitherfires or transfers him. This system makes institutional traders avoid losses.Private traders have to be their own enforcers.
An amateur who opens a $20,000 trading account and expects to run itinto a million in two years is like a teenager who runs away to Hollywood tobecome a pop singer. He may succeed, but the exceptions only confirm therule. Amateurs try to get rich quick but destroy themselves by taking wildrisks. They may succeed for a while but hang themselves, given enoughrope.
Amateurs often ask me what percentage profit they can make annuallyfrom trading. The answer depends on their skills or lack of such and marketconditions. Amateurs never ask a more important question: “How much will1 lose before I stop trading and re-evaluate myself, my system, and the mar-kets?” If you focus on handling losses, profits will take care of themselves.
A person who makes 25 percent profit annually is a king of Wall Street.Many top-flight money managers would give away their firstborn child to beable to top this. A trader who can double his money in a year is a star—asrare as a pop musician or a top athlete.
If you set modest goals for yourself and achieve them, you can go veryfar. If you can make 30 percent annually, people will beg you to managetheir money. If you manage $10 million—not an outlandish amount intoday’s markets— your management fee alone can run 6 percent of that, or$600,000 a year. If you make a 30 percent profit, you will keep 15 percent ofit as an incentive fee — another $450,000. You will earn over a million dol-lars a year trading, without taking big risks. Keep these numbers in mindwhen you plan your next trade. Trade to establish the best track record, withsteady gains and small drawdowns.
How Much to Risk
Most traders get killed by one of two bullets: ignorance or emotion.Amateurs act on hunches and stumble into trades that they should never takedue to negative mathematical expectations. Those who survive the stage ofvirginal ignorance go on to design better systems. When they become more260 RISK MANAGEMENT
confident, they lift their heads out of the foxholes—and the second bullethits them! Confidence makes them greedy, they risk too much money on atrade, and a short string of losses blows them out of the market.
If you bet a quarter of your account on each trade, your ruin is guaranteed.You will be wiped out by a very short losing streak, which happens evenwith excellent trading systems. Even if you bet a tenth of your account on atrade, you will not survive much longer.
A professional cannot afford to lose more than a tiny percentage of hisequity on a single trade. An amateur has the same attitude toward trading asan alcoholic has toward drinking. He sets out to have a good time, but windsup destroying himself.
Extensive testing has shown that the maximum amount a trader may lose ona single trade without damaging his long-term prospects is 2 percent of hisequity. This limit includes slippage and commissions. If you have a $20,000account, you may not risk more than $400 on any trade. If you have a$100,000 account, you may not risk more $2000 on a trade, but if you haveonly $10,000 in your account, then you can risk no more than $200 on a trade.
Most amateurs shake their heads when they hear this. Many have smallaccounts and the 2 percent rule throws a monkey wrench into the dreams ofquick profits. Most successful professionals, on the other hand, consider the2 percent limit too high. They do not allow themselves to risk more than 1percent or 1.5 percent of their equity on any single trade.
The 2 percent rule puts a solid floor under the amount of damage the marketcan do to your account. Even a string of five or six losing trades will not crip-ple your prospects. In any case, if you are trading to create the best trackrecord, you will not want to show more than a 6 percent or 8 percent monthlyloss. When you hit that limit, stop trading for the rest of the month. Use thiscooling-off period to reexamine yourself, your methods, and the markets.
The 2 percent rule keeps you out of riskier trades. When your systemgives an entry signal, check to see where to place a logical stop. If thatwould expose more than 2 percent of your account equity — pass up thattrade. It pays to wait for trades that allow very close stops (see Chapter 9).Waiting for them reduces the excitement of trading but enhances profitpotential. You choose which of the two you really want.
The 2 percent rule helps you decide how many contracts to trade. Forexample, if you have $20,000 in your account, you may risk up to $400 pertrade. If your system flags an attractive trade with a $275 risk, then you maytrade only one contract. If the risk is only $175, then you can afford to tradetwo contracts.47. MONEY MANAGEMENT 261
What about pyramiding — increasing the size of your trading positions asa trade moves in your favor? The 2 percent rule helps here too. If you showprofit on a trend-following position, you may add to it, as long as yourexisting position is at a break-even level or better and the risk on the addi-tional position does not exceed 2 percent of your equity.
Martingale Systems
Once you set your maximum risk per trade, you have to decide whether torisk the same amount on every trade. Most systems vary the amount ofmoney at risk from trade to trade. One of the oldest money management sys-tems is the martingale, originally developed for gambling. It has you bet agreater amount after a loss, in order to “come back.” Needless to say, thisapproach has a great emotional appeal to losers.
A martingale player in a casino keeps betting $1 as long as he wins, but ifhe loses, he doubles up and bets $2. If he wins, he ends up with a $1 profit(-$1 + $2) and goes back to betting $1. If he loses, he doubles up again andbets $4. If he wins, he gets a $1 profit (-$1, -$2, +$4), but if he loses, hedoubles up and bets $8. As long as he keeps doubling up, his very first winwill cover all his losses and retum a profit equal to his original bet.
A martingale system sounds like a no-lose proposition, until you realizethat a long run of bad trades will wipe out every gambler, no matter howrich. At the extreme, a gambler who starts betting $1 and has 46 losses in arow, has to bet $70 trillion on his 47th bet—more than the net worth of theentire world (about $50 trillion). He is sure to run out of money or hit thehouse limit much sooner than that. A martingale system is futile if you havea negative or even-money expectation. It is self-defeating if you have a win-ning system and a positive expectation.
Amateurs love martingale systems because of their emotional appeal.There is a common superstition that you can get unlucky only up to a pointand that bad luck is bound to change. Losers often trade more heavily after adrawdown. A loser fighting to come back often doubles his trading size aftera loss. This is a very poor method of money management.
If you want to vary your trading size, logic requires you to trade morewhen your system is in gear with the market and making money. As youraccount grows, the 2 percent rule allows you to trade larger amounts. Youshould trade less when your system is out of sync with the market and losingmoney.262 RISK MANAGEMENTOptimal f
Some traders who develop computerized trading systems believe in tradingwhat they call the optimal f—an “optimal fixed fraction” of the account. Thefraction of capital they risk on any trade depends on a formula that is basedon the performance of their trading system and their account size. It is acomplex method, but whether you use it or not, you can borrow severalsound ideas from it.
Ralph Vince has shown in his book, Portfolio Management Formulas,that: (1) optimal f keeps changing; (2) if you trade more than optimal f, yougain no benefit and are virtually certain to go broke; (3) if you trade less thanoptimal f, your risk decreases arithmetically but your profits decrease geo-metrically.
Trading at the optimal f is emotionally hard because it can lead to 85 per-cent drawdowns. It should be attempted only with true risk capital. The keypoint here is that if you trade more than the optimal fraction, you are certainto destroy your account. The lesson is: When in doubt, risk less.
Computerized testing of money management rules has confirmed severalold-timers’ rules and observations. The true measure of any system’s finan-cial risk is its biggest losing trade. A drawdown depends on the length of anadverse run, which can never be predicted. Diversification can buffer thedrawdowns. You can diversify by trading different markets and using differ-ent systems. Closely related markets such as currencies offer no diversifica-tion. A small trader is forced to follow a simple rule: Put all your eggs intoone basket and watch it like a hawk.
According to Vince, computer testing has proven several commonmoney management rules: Never average down; never meet a margin call;if you must lighten up, liquidate your worst position; the first mistake isthe cheapest.
Reinvesting Profits
Pay attention to what you feel when you handle profits. Many traders feeltorn between a craving for a bigger and faster buck and a fear of losing. Aprofessional trader calmly removes some money from his account, just asany other professional draws an income from his work. An amateur whofearfully grabs a profit and buys something with it before he can lose itshows little confidence in his ability to make money.
Reinvesting can turn a winning system into a losing one, but no method of48. EXITING TRADES 263
reinvesting profits can turn a losing system into a winning one. Leavingprofits in your account allows you to make money faster by trading morecontracts or being able to establish long-term positions using wider stops.Removing some of your profits provides a cash flow. The government alsowants its share in taxes.
There is no hard and fast rule for splitting your profits between reinvest-ment and personal use. It depends on your personality and the size of yourtrading account. If you start with a small account, such as $50,000, you willnot want to drain profits from it. When your account is well into six figures,you may begin treating it as an income-producing business.
You will need to make important personal decisions. Do you need$30,000 or $300,000 a year to live on? Are you willing to cut spending inorder to leave more in your account? The answers to these questions dependon your personality. Make sure to use your intellect and not your emotionswhen you make these decisions.
48. EXITING TRADES
Taking a loss can be emotionally hard, but taking a profit can be even harder.You can take a small loss automatically if you have the discipline to set astop the moment you enter a trade. Taking a profit requires more thought.When the market moves in your favor, you need to decide whether to stayput, get out, or add to your position.
‘An amateur can tie his mind into a knot trying to decide what to do abouta profit. He multiplies the number of ticks by their dollar value and feels asurge of greed: Let the trade run, make even more money. Then the marketticks against him, and he is hit with a jolt of fear: Grab that profit now,before it melts. A trader who acts on his emotions cannot make rational deci-sions.
One of the worst mistakes of traders is counting money while they havean open position. Counting money ties your mind into a knot. It interfereswith your ability to trade rationally. If you catch yourself counting paperprofits and thinking what you can buy with them — get rid of those thoughts!If you cannot get rid of them, get rid of your position.
If a beginner cashes out too early, he kicks himself for leaving money onthe table. He decides to hang on the next time, overstays a trade, and losesmoney. If a beginner misses a profit because of a reversal, he grabs the firstprofit on the next trade and may well miss a major move. The market tugs onthe amateur’s emotions and he jerks in response.264 RISK MANAGEMENT
A trader who responds to his feelings instead of external reality is certain tolose. He may grab a profit here and there but will eventually bust out, even ifhis system gives him good trades. Greed and fear destroy traders by cloudingtheir minds. The only way to succeed in trading is to use your intellect.
Quality Before Money
The goal of a successful trader is to make the best trades. Money is secondary.If this surprises you, think how good professionals in any field operate. Goodteachers, doctors, lawyers, farmers, and others make money — but they do notcount it while they work. If they do, the quality of their work suffers.
If you ask your doctor how much money he earned today, he won’t be ableto answer (and if he can, you do not want him for a doctor). Ask your lawyerhow much money he made today. He may have a general idea that he put insome billable hours, but not exactly how many dollars he made. If he countsmoney while he works, you do not want him for a lawyer. A real pro devotesall his energy to practicing his craft the best he can — not to counting money.
Counting money in a trade flashes a red light—a warning that you areabout to lose because your emotions are kicking in and they will overrideyour intellect. That is why it is a good idea to get out of a trade if you cannotget money off your mind.
Concentrate on quality—on finding trades that make sense and having amoney management plan that puts you in control. Focus on finding goodentry points and avoid gambles. Then the money will follow almost as anafterthought. You may count it later, well after a trade is over.
A good trader must focus on finding and completing good trades. A pro-fessional always studies the markets, looks for opportunities, hones hismoney management skills, and so on. If you ask him how much money hemade on the current trade, he will have only a general idea of being a little ora lot ahead of the game, or a little behind (he can never be a lot behindbecause of tight stops). Like other professionals, he focuses on practicing hiscraft and polishing his skills. He does not count money in a trade. He knowsthat he will make money, as long as he does what is right in the markets.
Indicator Signals
If you use indicators for finding trades, use them also to get you out oftrades. If your indicators are in gear with the market when it is time to buy orgo short, use them to decide when it is time to sell or to cover.48. EXITING TRADES 265
A trader often becomes emotionally attached to a trade. Profits give peo-ple a high, but even a loss can tingle the nerves, like a scary but exciting rideon a roller coaster. When those indicator signals that flagged a trade disap-pear, get out of the market fast, regardless of your feelings.
For example, you may go long because a 13-week EMA has ticked up onthe weekly charts while daily Stochastic fell into its buy zone. If you golong, decide in advance whether you will sell when daily Stochastic ralliesand becomes overbought or when the 13-week EMA turns down. Writedown your plan and keep it where you can always see it.
You may go short because weekly MACD-Histogram ticked down anddaily Elder-ray gave a sell signal. Decide in advance whether you will coverwhen daily Elder-ray gives a buy signal or when weekly MACD-Histogramtums up. You need to decide in advance which signals you will take. Therewill be many signals—and the best time to decide is before you enter a trade.
Profit Targets, Elliott, and Fibonacci
Some traders try to establish profit targets. They want to sell strength whenprices hit resistance or buy weakness when prices reach support. ElliottWave theory is the main method for trying to forecast reversal points.
R. N. Elliott wrote several articles about the stock market and a book,Nature’s Law. He believed that every movement in the stock market couldbe broken into waves, smaller waves, and subwaves. Those wavesexplained every turning point and occasionally allowed him to make correctpredictions.
Those analysts who sell advisory services based on Elliott’s methodsalways come up with so-called “alternate counts.” They explain everythingin hindsight but are not reliable in dealing with the future.
Fibonacci numbers and their ratios, especially 1.618, 2.618, and 4.236express many relationships in nature. As Trudi Garland writes in her lucidbook Fascinating Fibonaccis, these numbers express the ratios between thediameters of neighboring spirals in a seashell and in a galaxy, the number ofseeds in the adjacent rows of a sunflower, and so on. Elliott was the first topoint out that these relationships also apply to the financial markets.
Tony Plummer describes in his book Forecasting Financial Markets howhe uses Fibonacci ratios to decide how far a breakout from a trading range islikely to carry. He measures the height of a trading range, trades in the direc-tion of a breakout, and then looks for reversal targets by multiplying theheight of the range by Fibonacci numbers. Experienced traders combine266 RISK MANAGEMENT
profit targets with other technical studies. They look for indicator signals atthe projected turning points. If indicators diverge from a trend that isapproaching a target, it reinforces the signal to get out. Trading on targetsalone can be a tremendous ego boost, but the markets are too complex to behandled with a few simple numbers.
Setting Stops
Serious traders place stops the moment they enter a trade. As time passes,stops need to be adjusted to reduce the amount of money at risk and to pro-tect a bigger chunk of profit. Stops should be moved only one way —in thedirection of the trade. We all like to hope that a trade will succeed—and astop is a piece of reality that prevents traders from hanging on to emptyhope.
When you are long, you may keep your stops in place or raise them butnever lower them. When you are short, you may keep your stops in place orlower them but never raise them. Cutting extra slack to a losing trade is aloser’s game. If a trade is not working out, it shows that your analysis wasflawed or the market has changed. Then it is time to run fast.
Serious traders use stops the way sailors use ratchets —to take out theslack in their sails. Losers who move stops away from the market vote infavor of fantasy and against reality.
Learning to place stops is like learning to drive defensively. Most of uslearn the same techniques and we adjust them to fit our personal styles. Thefollowing are the basic rules for placing stops.
 
1. Stop-Loss Order
 
Place your stop the moment you enter a trade. Trading without a stop islike walking down Fifth Avenue in Manhattan without pants on. It can bedone, I have seen people do it, but it is not worth the trouble. A stop willnot protect you from a bad trading system; the best it can do is slow downthe damage.
A stop-loss order limits your risk even though it does not always work.Sometimes prices gap through a stop. A stop is not a perfect tool but it is thebest defensive tool we have.48. EXITING TRADES 267
When you go long, place your stop below the latest minor support level.When you go short, place a stop above the latest minor resistance (seeSection 20). The Parabolic system (see Section 44) moves the stops in thedirection of the trade, depending on the passage of time and changes inprices. If you use the Triple Screen trading system (see Section 43), placeyour stop after entering a trade at the extreme of the past two days’ range.
Avoid all trades where a logical stop would expose more than 2 percent ofyour equity. This limit includes slippage and commissions.
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2. Break-Even Order
The first few days in a trade are the hardest. You have done your home-work, found a trade, and placed an order. It has been filled, and you placed astop-loss order. There is not much else you can do— you are like a pilotstrapped into his seat for takeoff. The engines are blasting at full power, butthe speed is low, and there is no room to maneuver — just sit back and trustyour system.
As soon as prices start to move in your favor, move your stop to a break-even level. When the takeoff is completed, your flight is at a safer stage.Now you get to choose between keeping your money or gaining more,instead of choosing between a loss and a gain.
As a tule, prices have to move away from your entry point by more thanthe average daily range before you move your stop to a break-even level. Ittakes judgment and experience to know when to do it.
‘When you move a stop to a break-even level, you increase the risk of awhipsaw. Amateurs often kick themselves for “leaving money on thetable.” Many amateurs allow themselves only one entry into a trade. Thereis nothing wrong with re-entering a trade after getting stopped out.Professionals keep trying to get in until they get a good entry, using tightmoney management.
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3. Protect—-Profit Order
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As prices continue to move in your favor, you have to protect your paperprofits. Paper profit is real money — treat it with the same respect as moneyin your wallet. Risk only a portion of it, as the price of staying in the trade.
If you are a conservative trader, apply the 2 percent rule to your paperprofits. This protect-profit order is a “money stop,” protecting your equity.268 RISK MANAGEMENT
Keep moving it in the direction of the trade so that no more than 2 percent ofyour growing equity is ever exposed.
More aggressive traders use the 50 percent rule. If you follow it, half thepaper profit is yours and half belongs to the market. You can mark the high-est high reached in a long trade or the lowest low reached in a short trade,and place your stop halfway between that point and your entry point. Forexample, if prices move 10 points in your favor, place a stop to protect 5points of profit.
If in doubt, use the Parabolic system (see Section 44) to help you adjustyour stops. When you are not sure whether to stay in a trade or not, takeprofits and re-evaluate the situation from the sidelines. There is nothingwrong with exiting and re-entering a trade. People think much more clearlywhen they have no money at risk.
After the Trade
A trade does not end when you close out your position. You must analyze itand learn from it. Many traders throw their confirmation slips into a folderand go looking for the next trade. They miss an essential part of growing tobecome a professional trader— review and self-analysis.
Have you identified a good trade? Which indicators were useful andwhich did not work? How good was your entry? Was the initial stop too faror too close? Why and by how much? Did you move your stop to a break-even level too early or too late? Were your protect-profit stops too loose ortoo tight? Did you recognize the signals to exit a trade? What should youhave done differently? What did you feel at the various stages of the trade?This analysis is an antidote against emotional trading.
Ask yourself these and other questions and learn from your experiences.A cool, intelligent analysis does you more good than gloating about profitsor wallowing in regrets.
Start keeping a “before and after” notebook. Whenever you enter a posi-tion, print out the current charts. Paste them on the left page of your note-book and jot down your main reasons for buying or shorting. Write downyour plan for managing the trade.
When you exit, print the charts again and paste them on the right page ofyour notebook. Write down your reasons for exiting and list what you didright or wrong. You will have a pictorial record of your trades and thoughts.This notebook will help you learn from the past and discover blind spots inyyour thinking. Learn from history and profit from your experiences.Afterword
 
One hot summer, in the mountains of northern Italy, I sat down to draft thefirst outline of this book. Two and a half years later, on a frigid January inNew York City, I printed out its last chart. I wrote and rewrote this bookthree times, to make it clearer and to reflect my growing experience.
I have changed as a person, and my methods continue to evolve. If I couldwork on this manuscript for another two and a half years, it would become adifferent book, but it is time to let go.
Pulling the Trigger
Traders sometimes confide in me that they have trouble “pulling the trig-ger” — buying or selling when their methods tell them to go long or short. Ihad this problem once, for a very short time. My friend Lou, to whom thisbook is dedicated, helped me get rid of it.
One Sunday afternoon I mentioned to Lou that I saw several attractivetrades but doubted I’d take any of them the following week because I hadrecently gotten beat up in the markets. Lou, who is usually cool and mild-mannered, suddenly began yelling. “I want you to trade at the opening onMonday!” I did not feel like trading —I was afraid of losing. “J don’t give ashit whether you win or lose — trade tomorrow at the open!” I seldom trade atthe open, but I could trade 10 minutes later, looking for an opening range