Horsemen Defeated 💀 | Tackle Trading

≈ Beware of darkness, though. ≈

Last night we had a great event, the Swing Trading 101 Live Webinar. Coach Matt was on fire, the audience was on fire, Ricky Martin was on fire. We had a blast. No problem if you missed it, here’s the recording.

We all know rules and execution can make the Four Horsemen of the Trading Apocalypse look like teddy bears. Students who attended the webinar have learned how to apply the rules like a PRO. But there is one problem, presented under the Chart of the Day section.

• What are the chances that the patterns do not repeat themselves?
• Can the sequence end in a circle? Yes.
• Can the sequence end in a triangle? Yes.
• Can the sequence end in a shape that was not expected at all? Yes.

The future is opaque so we don’t know what is going to happen. Future’s doors are always opened to the unknown unknowns, things we don’t know we don’t know, as so wisely explained by Donald Rumsfeld.

What can we do in situations like this? What should be our first line of defense against the unknown unknowns?

Position sizing.

You have some nice chart reading skills. Last night, you’ve learned Matt’s SET rules and we know you will apply them with discipline and confidence. But if you have a $2,000 account and you put the $2,000 into one position you are done.

That’s when you thought you’ve defeated the Four Horsemen, but they are back again.

…

“Watch out now, take care
Beware of the thoughts that linger
Winding up inside your head”

Chart of the Day: Anything can happen

Last night, Coach Matt wisely stated that we don’t move the markets, we follow them. With that said, it’s not up to us to determine the probabilities of the sequence ending up in a circle, in a triangle or in an unexpected shape. You can argue that there is a 50% or probability that it will end either in a circle or in a triangle due to the past repeating itself over and over again. But what are the probabilities of the sequence ending up in an arrow, a shape that has not occurred in the past?

Video of the day: Position Size in Trading

In this video coach Gino Poore explains what position size is and why it’s so important.

Swing Trading 101 Live Webinar Replay

If you missed last night’s webinar where Coach Matt talked about the art of the swing trade or would like to watch it again, click here.

Originally published at tackletrading.com on February 28, 2019.