Some thoughts about trading accuracy
I truly believe that trading accuracy can completely change the trading results. So, if a trader has an unbalanced trading system that does not allow to correctly assess the risks and make the right decision, then he will lose profit due to early exits from the market or due to retention of unprofitable trades.
The accuracy of exiting the market determines the most important quality of a trader: “the ability to make the right decision”. That is, the skill to correctly assess the situation and possible risks associated with market behavior.
I ran into this problem recently when analyzing my trading history, I saw several profitable trades that were closed too early and could bring much more profit.
Fortunately, this did not lead to losses and I saw my inaccuracy on time, so I can successfully work with it and fix it.
If you wish to get the maximum profit and the losses to be minimal, it is not enough just to “cut losses when it small and let profits grow” The statement is right, but superficial.
Here are some of my thoughts on this:
If the market allows, then set your maximum loss limit.
Analyze possible risks for different scenarios of market movement.
Look for confirmation of your trading strategy signals.
The more information you collect about the current market, the more accurate your trading will be.