Posted In: Forex Trading Posted On: 2019/02/28 05:28 AM Posted By: ituglobal
Trading Article: Managing your Trading Business
I cannot say this enough times, so I’m saying it again, you must learn to keep your losses small. It is the single greatest concept that I can show you that will help you make profits in the market.
This principle is of such magnitude that it dwarfs all other principles for trade, money, and risk management.
Did you know that if you keep your losses small, you can flip a coin for go long/ go short, and you will make money in the markets? Yes, without even the benefit of trade selection you will make profitable trades if you learn to control your losses.
That means getting out as soon as you see that the trade is not doing what it should.
I know that losing is contrary to human nature. I know how much you hate to take those losses. I know how much you detest admitting you are wrong, especially when you’ve put a lot of work and planning into a trade. But consider this: If the trade doesn’t almost immediately go your way, then you have made a mistake! Either your planning was wrong or your timing was bad. The good trades almost always, quickly go your way.
Please read more here: https://www.tradingeducators.com/edition-762