In the Stock Market you learn fast there or you go broke in a
hurry. Every professional trader knows the great
secret and that is to keep your losses small.
Everyone learned that when they take a position:
either long or short – that we better be able to
jump out if the trade was not going our way.
Many of these traders were scalpers. That means
they were trading for just a few ticks and every
night went home flat. Flat is no positions at
Others, took a longer look
and planned to hold a position for a period of time.
That could be several days or weeks. If you were
right the longer you held on the more money you
The general public seems think that
exchange members know everything and always made
money. It is not like this. Many traders were wrong more than
50% of the time. Huh? Yes, fifty percent. They had accounts
had losses 40% of the time and 20% were scratch
trades (neither winners nor losers).
You ask, “If they don’t have money
60% of your operations, how can you make money? “
is what every professional knows: keep your losses
small and let your earnings run. How often
have you heard that BUT how many times have
Did you ignore that rule?
At the end of the year when
analyze your trades and find out you made $ 3.00 per
Every $ 1.00 you lost will show you a great profit.
I don’t care what business you’re in
you don’t put all your cue in one result
and stay until it works or breaks.
That’s what mutual fund managers and brokers
I want you to do They want you to buy, but never sell.
It’s cheaper, for example, to pay the 2% or whatever
fee there is and get out than hang around and lose
20% to 40% of your equity. Look back at 2000 to
2003. This can happen again despite what your
broker tells you.
Be wrong and run home with most of
your money. You still have enough to invest in a
better opportunity. If you are disciplined to get out
of any bad situation early you will end up a