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  • Digg it UP - Being Wrong Buying Stock is Okay

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    hey were trading for just a few ticks and every night went home flat. Flat is no positions at all.

    Others, myself included, took a longer look and planned to hold a positi

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    Being wrong is OK, but let's not carry it to extremes. That applies to everything, but let's limit our discussion here to the stock market.

    I have been trading for several decades and was an exchange memebr and floor trader for 17 years. You learn fast there or you go broke in a hurry. As you can see I managed to hold my own for a few years until I found the secret and started to become a successful trader. Every professional trader I know knows the one great secret and that is to keep your losses small.

    We all learned that when we took a position - either long or short - that we better be able to jump out if the trade was not going our way. Many of my friends were scalpers. That means they were trading for just a few ticks and every night went home flat. Flat is no positions at all.

    Others, myself included, took a longer look and planned to hold a positio

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    decades and was an exchange memebr and floor trader for 17 years. You learn fast there or you go broke in a hurry. As you can see I managed to hold my own for a few years until I found the secret and started to become a successful trader. Every professional trader I know knows the one great secret and that is to keep your losses small.

    We all learned that when we took a position - either long or short - that we better be able to jump out if the trade was not going our way. Many of my friends were scalpers. That means they were trading for just a few ticks and every night went home flat. Flat is no positions at all.

    Others, myself included, took a longer look and planned to hold a positi

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    I found the secret and started to become a successful trader. Every professional trader I know knows the one great secret and that is to keep your losses small.

    We all learned that when we took a position - either long or short - that we better be able to jump out if the trade was not going our way. Many of my friends were scalpers. That means they were trading for just a few ticks and every night went home flat. Flat is no positions at all.

    Others, myself included, took a longer look and planned to hold a positi

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    arned that when we took a position - either long or short - that we better be able to jump out if the trade was not going our way. Many of my friends were scalpers. That means they were trading for just a few ticks and every night went home flat. Flat is no positions at all.

    Others, myself included, took a longer look and planned to hold a positi

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    hey were trading for just a few ticks and every night went home flat. Flat is no positions at all.

    Others, myself included, took a longer look and planned to hold a position for a period of time. That could be several days or weeks. If you were right the longer you held on the more money you would make.

    The general public seems think that exchange members know everything and always made money. Tain't so. Many traders were wrong more than 50% of the time. Huh? Yes, fifty percent. My account had losses 40% of the time and 20% were scratch trades (neither winners nor losers).

    You ask, "If you are out of the money 60% of your trades how can you make money?" This is what every professional knows: Keep your losses small and let your profits run. How many times have you heard that one? BUT how many times have you ignored that rule?

    At the end of the year wh

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