| While many people believe that successful traders | | | | you somewhere else. |
| get it right "all the time" the truth is that even the | | | | When you do find a winner, you need to let it run. |
| best of the best have a pretty low success in terms | | | | Even with a 2 in 10 success rate you can make a |
| of picking successful trades. The great thing about | | | | small fortune on the stock market. You don't need to |
| trading is hat even of you are wrong 6 out of 10 | | | | be some guru. You just need to find more losers |
| times, you can still make a lot of money. The great | | | | more quickly and the rest will take care of itself. Off |
| Yankee batsman Babe Ruth once said that the | | | | course you need to be as smart as possible. Don't |
| reason why he hits the most home runs is because | | | | just burn through trades willingly. Find good trading |
| he strikes out more than anyone else.this is most | | | | systems and use them to the best of your ability. It |
| certainly true in trading as well. You need to be willing | | | | takes a lot of first hand experience to pick stocks |
| to strike out - a lot. One of the most important and | | | | that are likely to be winners. |
| probably the least emphasized concepts in trading is | | | | When you first start trading it can be overwhelming |
| this idea that you need to limit your losses and | | | | when your first 10 trades fail horribly. Don't despair |
| expand your profits. There is a saying that you have | | | | and don't think that there is something wrong with |
| to "cut your losers short and let your winners run". | | | | you. Be smart, learn all you can and always |
| What this means is that you need to trade a lot and | | | | remember this very important concept: Cut your |
| because you cannot find winning trades if you don;t | | | | losers short, let your winners run. Limit your losses to |
| trade. Then, you need to cut your losers quickly. Not | | | | a minimum and let your winner run and bring home |
| only does this limit your losses but it allows you tome | | | | the bacon. |
| move on quickly and make your money work for | | | | |