If the market turns against us, we don't keep adding money to the account to try and wait it out for a turn in our favor. We use bullish and bearish reversals to enter and exit the trade... Only if the gap between them is large enough to warrant a trade. We may enter at a bullish reversal for a short and exit at the nearest bearish reversal. An entry can also be had by selling a close below a bearish reversal, which is probably the safest way to enter. The key is knowing when you are wrong...that is what the reversals are for. If short any close above a bullish reversal would be an exit signal. We try not to use the daily charts... and concentrate on the weekly and monthly charts for our signals...that can be hard sometimes because of the gap between the reversals... Your stop loss is always a close above a bullish reversal when short. A profit target would be a touch of a bearish reversal.