"... trading is very competitive and you have to be able to handle getting your butt kicked. No matter how you cut it, there are enormous emotional ups and downs involved."
What this means?
- it means you need to have losses?
- it means you need to let your winner trades to become loosing ones?
One of Jones' earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions."
https://en.wikipedia.org/wiki/Black_Monday_(1987)
- "only" triple, wich is 3x, not 100x. It means he don't really used high leverage even on "safe" trades.
BTW Jesse Livermore anticipated a big crash and made a lot of money lat time.
=> Make a fortune it is possible id you can wait and anticipate a big crash and the direction is Short. It is not a day by day activity.
=> So keep your savings at a trusted broker and used it, only when it comes a big crash ( once in 10 year)
"
Trading style and beliefs
As reported in Market Wizards and the press, Jones futures trading style and beliefs are summarized as follows:
- Contrarian attempt to buy and sell turning points. Keeps trying the single trade idea until he changes his mind, fundamentally. Otherwise, he keeps cutting his position size down. Then he trades the smallest amount when his trading is at its worst.
- Considers himself as a premier market opportunist. When he develops an idea, he pursues it from a very-low-risk standpoint until he has been proven wrong repeatedly, or until he changes his viewpoint.
- Swing trader, the best money is made at the market turns. Has missed a lot of meat in the middle, but catches a lot of tops and bottoms.
- Spends his day making himself happy and relaxed. Gets out of a losing position that is making him uncomfortable. Nothings better than a fresh start. Key is to play great defense, not great offense.
- Never average losers. Decreases his trading size when he is doing poorly, increase when he is trading well.
- He has mental stops. If it hits that number, he is out no matter what. He uses not only price stops, but time stops.
- Monitors the whole portfolio equity (risk) in real-time.
- He believes prices move first and fundamentals come second.
- He doesnt care about mistakes made 3 seconds ago, but what he is going to do from the next moment on.
- Don't be a hero. Don't have an ego. Always question yourself and your ability. Don't ever feel that you are very good. The second you do, you are dead.
"
In a tutorial video somebody speaks about SL use it or not. He says there are 5 type of trades:
1. Enter a position and the price goes directly to your TP, no return.
2. Enter a position and the price goes directly to your SL, no return.
3. Enter a position and the price goes in direction of your TP but then returns to SL
4. Enter a position and the price goes to your SL direction, but later it turns to TP.
5. Enter a position and the prices go nothing just stay there.
So for this reason is the time limit set, to exclude the gambling: price stay or turn kinda excluded.
Livermore too didn't entered with full position just 1/3 size.
The position entry is like Enter in trade, wait for X pip or Y time.
- maybe close because negative pips ( -1% or -2%)
- maybe close because of time: price went in a direction and there it stay or ranging. It is a matter of luck in what direction it goes, so better free the margin: exit
- price went in desired direction X pip, then add another and set the previous to BE.
In numbers:
Be a random currency pair price x.1000.
Open a long with 1 lot and 100 pip mental SL ( x.0900)
Wait and see how it goes.
You see it reached x.1100 ( +100 pip)
Add 1 more lot, so the trade size it is 2 lot now.
The average trade entry it is at the x1050.
The mental SL: for first trade it is at x.1000 ( BE) and to the Second it is at the -100 pip, which is x1000. Average SL is at -100 pip. it is at the 50 pip distance from average BE
Then the price goes to x.1200
add another lot, so total 3 lots.
Average entry point is at x.1100.
- 100 pip SL , and other to the last trade BE: x.1100
Price moved 200 pip. Now it shows 1 lot +200 pip, 1 lot +100 pip , 1 lot 0 pip and 3x SL at -100 pip.
If it will be a pullback to a fibo 50% level: -100 pip it will be: 1 lot +100 pip , 1 lot 0, 1 lot -100 pip.
So it is allowed to kick your ass and loose 2 lot @ 150 pip average , because adding the new 3rd position.
If we look at the whole movement: +200 and then to -100 we are at the trade type 3 or maybe 5. Price went to initial direction and then stop or turn back.
We have no TP, so the case 1 is excluded. Passed the first SL so case 2 excluded, also excluded the case 4 too.
I know somebody who earn money in similar way. If is a pullback to 50% fibo, then the trend is not strong enough...
He eans money very few times. His win ration is around 20-30% or maybe less, but when a position can escape in trend, then he makes real money.
1-3 wins and 30 looser trades, or who knows 
In my opinion it should be closed when there are sign of pullbacks or hedge it abit for X pips.
This kind of system require well trending pair, and not really intraday like EUR/USD, but some crosses.
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