DISCIPLINE AND FLEXIBILITY
The novice trader will ignore a failed signal, riding his position into a large loss while hoping for the best.
The more experienced trader, having learned the importance of money management, will exit quickly
once it is apparent that he has made a bad trade. However, the truly skilled trader will be able to do a
180-degree turn, reversing his position at a loss if market behavior points to such a course of action. In
other words, it takes great discipline to capitalize on failed signals, but such flexibility is essential to the
effective synthesis of chart analysis and trading.
Jack D. Schwager,
A Complete Guide to the