It is human tendency to let the losses run long and cut short the profits as we are afraid of losing the small profit at hand. We are ready to keep on giving more leverage to the losses as it is human tendency to keep it as a paper loss. Follow these 9 guidelines to chart your way towards becoming a successful trader.
- Cut losses short - let profits run needs to be followed in letter and spirit. Remember that it is easier said than done and one need to practice it regularly.
- Do not overstay in a good market because if you do, you are bound to overstay a bad one too.
- Take your lumps; just be sure they are little lumps.
- Very successful traders generally have more losing trades than winning ones.
They do not have any hang-ups about admitting they are wrong and have the ability to close out losing positions quickly.
Trade all positions in futures on a performance basis.
- The futures position must give a profit by the end of the third day after the position is taken, or else get out.
Program your mind to accept many small losses.
- Program your mind to "sit still" for a few large gains.
Thus do remember to make use of our
best intraday tip and start making like successful traders as remember Stock market is a Science by itself to be executed with an art.
