There is a very interesting concept for traders and how they should trade. It is based on the possible results in every single trade.
When we open a trade we should be ready to get one of the following results:
- big profit
- small profit
- small loss
- big loss
From the list above, it is obvious that if we do the best to avoid big losses, our trading will be profitable. Of course, for this, we have to get not only a small profit but also big profit trades.
And this concept also matches another rule for traders, probably one of the most important: cut losses quickly and let profits run!
As you can see, for profitable trading you have to follow these concepts. They are logical from the core.
The problem of novice traders is that they follow the rules vise verse.
The get big losses and avoid big profits. Or in other words, they cut profits quickly and let losses run.
So, from this post, you can get better ideas about how you should trade, in order to be profitable in the long run.
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