Never, ever chase a break

Another lesson in temperament and self-control is the ability to not chase a rally (or breakdown) if the trade no longer stays within your risk parameters (i.e., too wide a stop to stay in the trade).

It’s painful to watch a rally get away.

Yet, remember that you don’t lose money while you wait for the right pitch.  If the right pitch just got away from you, just wait for the next.  There is always, always another trade to swing at.

Chasing breakout that are too far from the original risk parameters leads to sloppy execution, skewed risk/reward scenarios, and more times than not, to losses.

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