The biggest misconception beginners have is that not holding a position means you’re not trading. So they stay fully invested, constantly buying and selling,
until fees and market swings wear away their capital.
In reality, staying flat is the only position with zero losses. If you can’t make sense of the market, stay flat.
Staying flat when bulls and bears are battling it out, and staying flat after a string of losing trades—the money you save at these three moments
is more than most people make from trading.
We’ve all heard the hunting metaphor to death, but the principle holds true: hunters spend most of their time waiting. Pulling the trigger
takes just a second. When you have capital on hand, you’ll have ammunition when an opportunity comes along. Hold on to your ammo.
What do you think? Share your experience in the comments.