Disaster waiting when Not Limiting Your Losses

If you know the pitfalls of trad ng �i you can easily avoid them. Small mistakes are unavoidable, such as

incorrect insertion of the stock symbol or incorrectly setting a buy level. But these are forgivable and, with

Fortunately, even profitability. What should be avoided, however, the errors are due to bad advice, rather than

simple mistakes. These are the �d eadly? Mistakes that ruin the whole career, instead of just one or

two jobs. To avoid these problems, we need to look closely and you stay diligent.

Thinking of trading errors, such as driving a car on icy roads: If you know that driving on ice is dangerous,

you can avoid traveling to a storm of sleet. But if we do not know the dangers of ice �t, you may drive as if there

threats were not only the realization of a time that his mistake and �r already off-road.

The operators often fail to limit losses in search of a great victory. Of course, the only way you can make a

Fortunately commercial actually stay in the game, and �s hard to stay in the game when you already lost �v and all

your money. The problem is that people often feel like every loss is a failure and, therefore, not a �t

strategy to integrate �s AFE? Losses. They may feel �p LANNING? This is a loss to plan to fail, while in

Indeed, the planning �s to maintain themselves in the game.

The losses are a part of our business. The key to success is to limit losses. Too many players too �r

oom? And very successful, which can be reduced to account for 20%, 30%, and sometimes even 40%. It is necessary to

in place a system that will ensure that you set to avoid the loss of small emptying your account.

There �s a huge difference between losing big on a regular basis and losing in a small business plan

check. You already know that you should keep your losses small, the key is to keep them smaller that your

media wins. Even if your winning percentage is only 50% is still �l profit properly if you set yourself. For

example, if you have a weekly strategy was $ 300 to win, but only $ 200 for each loss, a draw for a win and a

loss continues to make a profit of $ 100 per week.

The real key is to set a weekly goal and to make sure you have set a limit of loss for each trade. So �s say

your goal is $ 300 each week and you want to be sure that we do not lose more than $ 200 per trade. If the

the first two trades of the week have been losses, and �r down $ 400. But all you need is three more victories

for the rest of the week to make your profit. Once you meet your goal, stop the trade, otherwise could end

with more losses, the delay is gouging and funds in your account, which simply returns.

The basic rule: always know when to exit a trade. Set a limit of loss and stick to it. But even in the short term

objectives, and stop when you �v and met those goals. Don �t ever play. Remember that the search for small

gains in the long term is much more reliable and coherent strategy that will help you avoid losing too

too quickly.

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