The best trade I made today was the one I didn’t take
Hey trader, The Nasdaq gave me a clean short signal today. The setup included a Bollinger Band breakout, a one count reversal with follow-through, and a clear target. I didn’t take it. The reason had nothing to do with the pattern and everything to do with the math behind it. The stop was 99.5 points wide. On a $5,000 account, that puts the trade outside my band of acceptable risk no matter how clean the chart looks. Here is the framework I used to make that call, and how to apply it in your own account. A Signal Is Not the Same as a Trade A signal tells you direction. The math tells you whether the trade fits the account in front of you. Position sizing is what connects the two. Skip that step and you end up taking valid signals that push you past your risk limits. One bad