We might see some price action that makes entries not unreasonable, and so we enter on that price information, but not sure if this is going to be a scalp, an intraday surge (a "bungee"), a pattern trade if mechanical system price levels are hit, an overnight hold candidate, a swing trade, a position trade, or a long term hold.
What we know is that we have a favorable short term tactical entry that is reasonable on its face and we will allow the trade and the market to determine its fate. The intraday decision-points move us to "no lose" stops as quickly as possible, and then the trade is managed using Day 1 management techniques.
If we have market and trade conditions going into the close that suggest an overnight hold is possible, we can perform math to adjust our position size to account for overnight risk and then proceed into Day 2 and beyond management techniques.
Our certainty about what kind of trade we are in will increase as price information emerges through time, and so we can say we are adjusting our "Aim" for what the trade is becoming as we go. This is information that was not available to us when we entered.
Is this technique or strategy-bundle more difficult than mechanical systems or strict pattern trading?
Yes it is.
It places a premium on judgment, rehearsals, adaptability, on-the-fly trade and risk management, and an openness to what is going on rather than what is in our head.
The advantage of this style is that you can act in a low risk way with incomplete information in chaotic or complex markets which can be an edge for the experienced trader.
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