The biggest misconception among beginners: if you’re not holding a position, you’re not trading. So they stay fully invested, constantly entering and exiting trades,
until fees and market swings wear down their capital.
In reality, staying flat is the only position with zero losses. If you can’t read the market, stay flat.
Stay flat when bulls and bears are battling, and stay flat after a few wrong trades in a row—the money you save in these three situations
is more than most people make from trading.
You may be tired of the hunting metaphor, but the principle is true: hunters spend most of their time waiting. Pulling the trigger
takes just a second. Keep your capital intact, and when an opportunity comes, you’ll have ammo. Hold on to your ammo.
What do you think? Share your experience in the comments.