While calling direction is important, I believe it is just as important if not more so to preserve capital. This has been the biggest challenge for me in my yrs of trading. Getting out with smalls losses & doing it quickly.
New traders(& old ones) must understand this or you can blow out an acct quickly. How many times have I waited to get out at even or better once it was going against me. Always thinking it will turn soon.
Stop loss is a problem area as all look at it different. Some look at losing a set dollar amount, others look at s/r levels, some add more when wrong, etc.
I have learned the hard way, set a stop loss after the trade is on because it can always go further than you think.
Opinions?