Thursday, July 10, 2014

Stock market trading plan

Your position size should be such that you are not risking more than what you determine to be a truly acceptable loss. You should make sure this number which is really your ultimate risk is a number you are very comfortable with. With the correct numbers figured in your plan, you can be wrong and lose money on two out of every three trades for the rest of your life and do very well. So you completely understand, both losing trades were profitable for a bit and then stopped out after moving your protective stop order closer to your entry price. These were not full stop losses but even if they were, it would still be more than fine because your protecting profits. Taking your proper losses and holding your positions to your profit targets is the key to small losses and larger profits. Traders shound not be greedy "pigs get slaughtered".
Trading plan

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