Article Categories

»	Arts & Entertainment
»	Automotive
»	Business
»	Careers & Jobs
»	Education & Reference
»	Finance
»	Food & Drink
»	Health & Fitness
»	Home & Family
»	Internet & Online Businesses
»	Miscellaneous
»	Self Improvement
»	Shopping
»	Society & News
»	Sports & Recreation
»	Technology
»	Travel & Leisure
»	Writing & Speaking

Reprint Article Code

Category: Articles » Finance » Investing » Article » Article Code

Learn To Like Your Losses

Sounds almost morbid doesn't it? Well, maybe it is....but losses are a fact of life and your ability to take them systematically without fault is key to your long term success. You see, every system ever designed and traded has suffered losing trades and most have had several losing trades in a row. Even short term systems that purport a high percentage of winners will hit periods of 3-4-5 losses in a row. If you stop taking the signals, then your gauranteed to lose and never get back your money. Ironically, after a ... read more

Article Title:

Article Body:

Sounds almost morbid doesn't it?

Well, maybe it is....but losses are a fact of life and your
 
ability to take them systematically without fault
 
is key to your long term success.

You see, every system ever designed and traded has suffered 
 
losing trades and most have had several losing trades in a 
 
row. Even short term systems that purport a high percentage
 
of winners will hit periods of 3-4-5 losses in a row.

If you stop taking the signals, then your gauranteed to lose
 
and never get back your money. Ironically, after a losing
 
streak, is when a system will normally bank a series of winners
 
or the one big profit trade.

So the next time you find yourself mired in a drawdown, take
 
some satisfaction in knowing that losing periods happen
 
to everyone and that if you stay disciplined, your method will
 
most likely carry you through it. Realize that the pressure
 
you feel to quit, is the pressure that every trader feels
 
at some point and it's how you handle that pressure that defines
 
your ultimate success. Winners trade through it and losers don't, 
 
it's just that simple in most cases.

Now please, the above discussion is based on the assumption
 
you have a sound trading method and you implement
 
proper risk management. If you don't have those two variables
 
nailed down, all the persistence in the world will not
 
help you.

For More Free Trading Tips, go to:

http://stock-trading-tips-short-term.blogspot.com

Larry Potter is a recognized authority on the subject of trading 
 
and has been publishing his newsletter, Stocks2Watch®, since January 
 
of 1998. Each evening, his newsletter contains picks for the next day 
 
and always includes a daily trading tip.

For a FREE report on HOW TO TRADE FAST and a free trial to Stocks2Watch®, click here

http://clik.to/stocks2watch

Tip 2: Pullbacks

When a stock sells back after a run on lower volume, we refer to that as a
 
pullback. Pullbacks are a natural and healthy part of a move up. Stocks
 
cannot continue to move up without stepping back and taking a rest. It is
 
important that it occur on lower volume - that shows orderly profit taking
 
and not distribution. Averages act the same was as individual stocks, and
 
that is why all the analysts get bent out of shape when the NASDAQ has a 45 
 
degree climb with very few pullback days.

Pullbacks are also called 'retracement.' Stocks tend to retrace or
 
pullback the same percentage after each run. Some stocks retrace 25%-30%,
 
some 50%. We prefer to use the moving averages as a gauge - the 10 day 
 
moving average is often reliable when stocks are moving up in a good market.

Author Bio:

Some other recently published investing articles

Making an offer on an Irish Property by Clint Jhonson
More often than not, First Time Buyer Ireland couples/singles find it very difficult to obtain suitable mortgage offers. However, after you pass the ...

How To Search California State Tax Lien Records by Zach Parker
In terms of picking a high yielding investment, tax liens might bring decent returns if bought wisely. It is very important ...

Buying a House at Auction is Very Good Investment by Kotia Kot
All house prices are still rising popular areas, homes usually already under contract by the time the estate agent's board goes up. People should also find another ...

The Future of Gaming is here, why the Video Game industry is reaching new highs. by Jonel Cordero
Ever wonder why at the local Toys R Us, the Nintendo Wii still sells out in 15 minutes even though a shipment of 20 or so come ...

All The Relevant Details About Remortgage Quotes Uk by Turk Malloy
If you feel that the mortgage deal that you have took up some years back to be excessively high then the best option is remortgage quotes ...

How Investment Property Helps You Retire Early by Marian Rozwenc, PhD
Everyone is looking for the best way to retire early. We work ourselves to death and still over 90% of the population can't afford to retire at the age of 60. ...

Publisher Guidelines

You may reprint this article electronically in your newsletter or on your website, free of charge.

If you reprint this article from our site, then you must keep everything intact. This includes the articles title, author name, articles body, authors bio / resource box, the links contained within the article, all copyright notices and the link pointing back to our site. All links within the article must also be made active / hyperlinks.