A set of trading rules could make all the difference… It could give you the confidence to stay on big trends, and the know-how to exit your trades with consistency. The right rules could also help you resist the urge to take profits too soon.
I’m going to tell you about a defining moment in my career. It involves a trade that would have a lasting influence…a trade that gave me confidence that I’d make it as a trader.
Could a bet change your life? And I’m not talking about playing lotteries or backing horses… I mean, could a challenge between two people seriously impact the way you trade?
A tight stop strategy may seem like a good idea…it lets profits run and closely protects gains. But as you can see, being too protective of profits could cost you a lot of money.
You don’t make money when you buy — you make it when you sell. I’ve seen many traders come and go over the years. One of the leading reasons they fail is due to poor exits. Their mistake often comes down to one of two things.
What really matters, in my view, is your selling strategy. This has the greatest impact on your trading results. It’s the swing factor that separates the best traders from the pack. I talk a lot about letting winners run and cutting losers.
‘Will I ever be able to do this?’ These words can creep into our minds when a goal seems beyond reach. We think about where we are — then where we want to be — and wonder how we’ll ever get there. Now, this can apply to anything. It could be with trading, business, sport or study.
So don’t be too hasty to walk away if you miss a buying opportunity. Instead, weigh up your potential regrets — what will bug you more: a relatively small loss or a big missed profit?
They say your biggest regrets are not what you do, but what you don’t do. And do you know what? I agree. It’s the opportunities I let go that linger longest in my mind.
Hunkering down may feel safe. But historically, it’s a risky strategy. Most of the time the world moves on without you — all the opportunities go to those that stay in the game.