Learning
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From Our Experience
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The most
important element of any trading system is THE TRADER. Concepts,
indicators, techniques and strategies are good ONLY when they fit the
personality and beliefs of the person using it. |
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There is no
such thing as a "great" or "safe" stock. As
William O'Neil says: "All stocks are bad, unless they go up" |
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"Cut your
losses short and let your profits run" is more than an old Wall
Street cliché. It is a core concept that every trader and investor
should adopt. In his book, How to Make Money in Stocks, O'Neil
addresses the first part of the concept when he insist that no one
should let a stock goes more than 7-8% below the initial purchase
price. In his selling rules, he addresses the second part of the
concept. Van K. Tharp talks refers to this concept as a whole in his
teachings about expectancy. All of the traders featured on Jack
Schwager's book, Market Wizards, stretch the importance of taking
losses quickly. |
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