The major turning point in my trading career came when I started to track my trades on an excel spreadsheet. It held me accountable for my trading actions.
I noticed I developed a problem of adding to losers, which compounded my losses. Once I began to accept losses and cut them quickly, the profits from my winning trades started to exceed my losers and the big turnaround was in place…....
Prudent risk management is the key to my trading success. I am wrong at close to 50% of the time, yet I am consistently profitable and have been forever. It’s because I cut my losses quickly. My average loss size is much smaller then my average gain. When my position goes against me, I quickly take a small loss and move on. There is no point in staying and waiting for it to come back. I can always buy another stock. This thinking I wish to install in all of you. This cannot be taught & must be learned. 😉