Ep. 846: When Mass Panic Rolls Out You Need A Plan with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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How to Avoid Type One and Type Two Errors
A type one error, one which results in a loss. Any trading procedure will have approximately 50% losses. A type two error passing up a good trade. Don't let a major trend in a market get away from you. This can outweigh 100 little trades. If the market is three to four ATR from the ideal buy point, you want to execute a defensive mover to get in.
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