Wonderful advice

Bill Cara Technical
The fact is you will never be perfect. At the end of the day, if you can be 60% or 70% right in your decisions and keep your average percentage loss below your average percentage gain, you’ll become a highly effective and successful securities trader.

It’s nice to have big dollar wins but it’s more important not to have big dollar losses. A 90% loss in a position requires a gain of 1000% in that holding to recover. Think about that!

If you lose as much as you win, as often and in percentage terms, you soon will not have any assets left. If you don't believe me, start with $100,000; then take a 50 percent loss (leaving $50,000); then earn a 50 percent profit (leaving $75,000); then take a 50 percent loss (leaving $37,500); then earn a 50 percent profit (leaving $56,250); then take a 50 percent loss (leaving $28,125); then earn a 50 percent profit (leaving $42,188); then take a 50 percent loss (leaving $21,094); then earn a 50 percent profit (leaving $31,641); then take a 50 percent loss (leaving $15,820)... you get the point.

So, traders have to be defensive before they go on the offensive.

More than anything, I feel that technical tools can really help you take that necessary defensive posture.