Jun 19, 2015

Free Newsletter Sample: Trading Lesson #501

"If you can`t take a small loss, sooner or later you will take the mother of all losses." 

The ability to take small losses is a skill shared by all successful traders. And this is where most novice traders really struggle. The inability to pull the trigger and close out a trade that is not working and taking a small loss is a thing that looks so obvious in print but it is a habit that comes with discomfort for many traders.

One practical technique that I want to suggest to you today is to keep tracking your trades using the Profit Factor. You can grab a piece of paper and you start to register the winning trades on top and the losing trades on the bottom. What you must focus on, is not on the number of trades that are on the top (winning trades) or on the bottom (losing grades) but on the ratio between the aggregate winners and the aggregate losers. So you want to put big winners on top and small losses on the bottom.

**this is an excerpt from my daily email based Newsletter.

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