Sunday, March 2, 2008

Love to take a small loss

The idea about loving to take a loss seems contradictory to the whole point of trading, which is to make a profit. However, taking smaller losses relative to profits is necessary and an inevitable aspect of trading. Much like learning to ride a bike involves falling down, making these events small is a prerequisite to long term success.

A contrast to this situation is taking large losses and refunding your account periodically. If you can't stop, then at least I can say thank you on behalf of the rest of us for supplying our profits.

No comments: