Tuesday, February 14, 2012


YOU DON'T HAVE TO TRADE EVERYDAY.  Trading is all about opporunity, spotting it and then acting upon it. But there are some days when opportunity doesn't arise. On those days, it is best to sit on your hands and do nothing. You can't create something when it isn't there. No square pegs into round holes, so to speak. Just be prepared when an opportunity does come along.

While I am on the subject, there is one other rule... it is the holy grail of trading. CUT YOUR LOSSES. If you were to just  follow this one rule, you would be an above average trader. When you enter into a good trade, you will feel it almost instantaneously and likewise when you enter a bad trade, you will know.  The hardest thing for novice traders,  for some reason, is admitting they're wrong and moving on to the next trade. Any experienced  trader will tell you to "cut your losses".  Imagine that, if you were to just follow this one rule, you would make money trading.

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