Friday, September 29, 2006

Never go broke booking profits

You think so?
Think twice.

You have profits and losers. If you continuously have less profits than losers, you will go broke, even when you take profits on your winning trades.

So the correct rule for any aspiring trader is:
Make sure your profits pay for your losers and commission.

That way you will still have an account when you have found your edge in the market.