Stay in the game | stockbee

3/10/2011

Stay in the game

Stay in the game

Most important thing you must learn in the market is to cut your losses short and never ever take too big a loss.
Holding on to losers in hope of bounce back will end your career unless your entire strategy is based on buying exhaustions and have risk management strategy to go with it.
How many of you are still holding on to losers, hoping they will bounce back.
image
Stay in the game. Keep drawdowns low. If you preserve your stake then you can play the game. Else you are out of game. If you stay in the game long enough you make lots of money.
Sometime cash is best option.
I have been actively blogging for last 5 years or so and talked to lot of traders in last five years. Very few have survived beyond few years. You will see most trading bloggers do not survive beyond few years. The reason is pretty clear large drawdowns. One day they just disappear.
Don't let that happen to you.

No comments: