I hadn’t come across Brent Penfold’s work until I heard him speak on a podcast. His content felt professional and was enjoyable to listen to. It felt I needed to get a hold of his book The Universal Principles of Successful Trading that was published in 2010. In the introduction Brent writes about the fact […]
Tag: losses
This is a quote from William O’Neil, a market veteran whose bestselling book I recently read. I’m going to publish a review of the book soon. But the title says it all about my approach to trading. If a stock has momentum and is going up, I want to be onboard until it lasts. I […]
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I don’t take profits and losses, I exit
It is easy to get one’s mind clouded by thinking of profits and losses, money is important in our society. Amateurs often want to take profits and keep losses for obvious reasons of human nature. I think of trading being a game where I follow my entry, exit and risk management rules. The goal is […]
In my last post I wrote about a couple of shorts to hedge my long exposure in the market. Here I will show the charts. It’s useful to go back and review trades after a while, studying the entry and exit in the middle of the chart is a much better way to learn than […]
Just take the loss while it’s small. You will preserve your financial capital as well as your emotional capital. Yes, there is emotional capital that we give away while we’re stressed with a trade. What I’ve come to realize is that all professional traders take losses, even the most successful ones. What separates them from […]