It is a well-known fact that most successful professional dealers have more losing trades than winners. That is correct, more losing trades than winners! What's that? Simple, they market trades fast and continue winning transactions to increase their gains.
Second is the disciplined trading in critical. Setting goal exit costs before entering a trade makes it possible for the prosperous dealer to exit losing trades with just a little reduction. Placing exit costs for winning transactions is equally as significant.
Since the purchase price of a stock increases you may set an exit cost to take profits. You do not need to exit the transaction at this stage, however. To know more about stock trading options, you can browse to https://optiontiger.com/course/etf-and-indextrading/.
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This can be summarized as follows:-
- Carefully planning trades by placing clear entrance and exit points
- Ensuring losses are kept as low as you can using stop-loss activates
- Protecting gains with trailing stops
- Exiting the place when stops are struck
OK, using this technique will not get you at the very bottom or outside in the exact top. Frankly, in case you handle that you got blessed. However, you'll enter your transactions on a rising tendency and depart promptly when the market turns.
The point is, you will still be at the game prepared for another prospect. If you'd like a professional stock trader the secret is to be more disciplined and accept those gains whilst minimizing your own losses.