Split the principal. You only have one pot of money—if you blow it all in one go, you won’t even have the ticket to get back up. I divide my funds into three parts: the short-term position is traded and then I exit; the swing-trading position waits for trend confirmation before I move; and the “survival” position is never touched. A lot of people lose money because their position size is too heavy—one small pullback is enough to break them. Some others lose because they don’t know how to wait; they want to open trades every day. Most of the market time is spent ranging. If there’s no signal, just sit tight and wait. When the direction becomes clear, then you act. If floating profit reaches the target, take out part of it first. The numbers on the screen don’t count as money—only when you lock it in does it become yours. #DowFalls464Points $HYPE
Once your stop-loss order is placed, set it and you’re done—when it hits, you leave; don’t wait for a rebound. When profit reaches the target, take it and don’t get greedy at the very end. If you’re losing, never add to the position. The more you add, the heavier it becomes and the harder it is to get out. Hold onto it when you’re right. Cut it when you’re wrong. Don’t rush to make it back just because you lost the previous trade. In the end, what you’re really competing on isn’t who called it right more often—it’s whether you can stop the damage in time when you’re wrong. The market isn’t short of opportunities—what it lacks is people whose principal is still intact. Control your position size and stick to your entry/exit rules. Profit is the result that time gives you. Those who want to become “big fat” from one bite usually end up falling along the way. Take it steady—you’ll go further. $MU