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LIMITING YOUR WINNERS AND LETTING YOUR LOSERS RUN......

This is very common reason why the trading is a losing game for many people. This is the reason we are discussing this point in length.
whatever is the trading strategy that a trader uses, it will have its share of losing trades. It depends entirely on you money management methods that will decide the success of trading career. In case you keep you stop loss large then you of course need more large winners or very few losers for making you on the positive territory.
In case you keep very small stop losses then you could afford to have more losers and few winners which can be keep trailing for best gains.

Now when the winning trade comes immediately after a losing trade there are 2 types of reactions.
one may be that i should exit fast and make up loss and the other maybe let me remain till the end or when i get large targets to be in gains . In the first  case the trader will just break even on the day and the second case since the trader gets greedy may even have to take a second loss .

In practical trading there need to be no place for commotions and emotions. The trader should no link in the personal mindset of the trader and the emotions from markets . The more there is  a disconnect the better is the probability of successfully gaining using any trading strategy or buy sell signal intraday software.

When in trade one should not assume what the gain size may be . One should just maintain the  risk management rules in all cases and see what the and result may be .

The big winners are big only when we practically ride it . Or they will just be a emotional drain to see that it went by giving no gains. This is the reason that on any trading systems there is no need to over analyse it and only take all the trades . You never know which comes to be a big gainer.


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