DislikedApologies if I am wrong but I think you possibly missunderstand what he is saying.
Jesse buys the 6000 at average 111 3/4 reading my book and price is 114.
After this rally finishes (could go higher 115 or 116 say) price retraces and holds above average entry say 112 1/4 [would he have sold if it had gone below 111 3/4?].
Price starts to rise and gets to 113 3/4 just below his previous entry.
He now puts in a market moving order to test the markets opinion,as he gets filled with rising prices he is happy there is potential for the stock to rise.If...Ignored
What I get from him is to:
1. Go with underlying conditions
2. Focus only on Mega Trends
3. Cut your losers and let your winners run until fundamentals start changing.
The only issue is the starting capital. As he few times metioned, it took shit out of him to execute a trade at times when he had limited starting capital. He had to be right from the very begining.
In this experiment, I am just following general market conditions and risking not based on what I now have in my account, but what would be the account balance after few successful trades. If I lose let's say $9,000 out of total $10,000 of initial capital, this $9,000 would just be a fraction of my account balance after hitting three or four successful trades.
The Thief of Wall Street