Force yourself to think through your trades
Letting The Winners Run
Talk to any experienced trader, read any book about trading, or simply rely
on your own common sense. Inevitably, they will all tell you the same thing: the
key to successful trading is to limit your losses, and to let the winners run.
Like just about everyone else, I learned the former (and most important) lesson
about not losing money the hard way a few years ago. It’s a painful, but
necessary portion of the trader’s learning curve, and I suspect that nearly
everyone who reads this knows exactly what I’m talking about. Lose several
thousand dollars of your own, hard earned money in a matter of days or weeks in
the stock market, and–if you even decide to give it another shot– you’ll never
trade without a stop loss order again. In retrospect, that’s the easy part.
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