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.Compare your risk to thepositions, especially short positions.profit potential in a particular trade.If your trade is going8.If you are short and you see the market going down and yourwell, stay with it.stock is not coming in, start buying back the stock instead of21.When you add to a position consider how much risk and re-waiting for the market to continue coming in.Overcome yourward you are adding.If you are doing well, perhaps that's alltendency to keep from covering your shorts because youyou can expect for today's trade.Don't stretch your luck.think the market is going to fall apart.22.If you get bigger and stay longer you increase your risk in a9.Don't fight the tape all day long.keep looking forhigh-volatility market.shorts when the tape is trending up throughout the day.23.When you buy a group, you increase your profitability and10.Look at each position on its own merits.Don't justify beingyou reduce your risk through diversification.Increase thein one stock by being ahead in another stock.Keep figuringnumber of positions you take and you increase your chanceyour risk/reward ratio on each position and on each new in-for profitability.crement you take in stock.24.Keep looking at what compels you to trade in a certain way.Is11.Be satisfied with your positions if they are stretch positions.it rational from a trading viewpoint or is it merely a reflectionDon't always be looking to hit a home run.of your personality and style?12.Stay with things longer and try to get bigger, rather than25.If you take too many positions to cover yourself, you lose thetrade in and out.Get bigger in your winners and lack out themaximum punch.ones that aren't working.26.Remember that traders lose the most money when they load13.Try to diversify.Traders lose the most money when they areup on one side and make a bigger bet the next day.loaded up on one side of the market and making a big bet the27.Diversity is good.next day.Diversity doesn't mean to hedge but to have a diver-28.Trade more quickly.sity of ideas. TRAD I NG TO WI N124 Trading Principles 125on short stops, it was recommended that he never sell a stock that wasThirty-One Basic Riskup and that he should short stocks that weren't going up.That way hewould make money on the long side, and not lose so much on the short29.To be successful, keep moving.Don't get too attached to aside.In effect, he was encouraged to eliminate the short side in order tostock.become profitable consistently.Six months later, after repeated sessions30.If you are a compulsive trader who frequently blows up, con-and two forced withdrawals, Brent began to demonstrate a string oftrol your risk by lowering your targets and being more awareconsistently successful weeks of trading.of your risks.Stop swinging for die fences.When you are"What are you doing now that's different?" I asked him at ourabout to do something stupid, ask for help.Go back to mak-weekly seminar.ing a steady $5000 to $10,000 a day and you will soon be"I'm limiting my risks," he replied."I'm not exposing myself to asuccessful.forty-thousand-dollar loss.I know I can come in every day and make31.Have good reasons to buy a stock.Is it at the low end of thebetween ten and twenty thousand dollars trading.But I didn't thinkrange? Has it been upgraded by an investment house? Is diethat was okay in the past, because everybody else was making a hun-valuation of die group going up?dred thousand every day.I was the wrong way on the market most ofthe time, my timing was off, and I was shooting to make fifty grand ineach position when I didn't have the cushion if I was wrong.I feel bet-Keeping the Faithter now making ten to twenty grand and sleeping at night.It's easier tobe long if I'm short a couple of stocks.I feel more comfortable if it's"Stay with the winners and get rid of the losers" is a basic tenet.Itbalanced.sounds easy enough to follow, but you need internal strength to do"The great temptation is to try to be smart and short into a rallythis.You can't do it without having faith in your decisions.If you don'tfiguring it's going to turn around and drop [ Pobierz całość w formacie PDF ]
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