Another too short day-trading session again. I ended up with a 2.468% profit. The market kept moving and formed some other trade setups that I didn’t take because I was busy with the site and I saw the trade setups a little too late. But, it’s okay.
Dealing With Losses in Stock Trading
You have noted that I talk about losses more than profits in stock trading. The reason is, if you learn how to limit and handle your losses, you will win. Another reason is, losses hurt you emotionally, but profits don’t. So, you have to learn how to deal with your losses. Your profits won’t be any problem. Maybe I can even say that trading is not about making profits. It is about handling losses. Your losses can stop you, but your profits can’t.
When your losses are big and uncontrolled, they can wipe out your account. This can cause you to give up on stock trading for good. If you miss the opportunity of making money through stock trading, chances are you will never be faced with such a great opportunity for the rest of your life. And, this will be a much bigger loss. So, you should not let this happen from the first day that you start trading stocks.
When your losses are small but repeated and continuous, they can develop fear in you that can gradually prevent you from trading, until you quit trading completely.
Therefore, losses are more important than profits and they have to be handled properly, otherwise they can create serious and permanent problems for stock traders. However, the good news is, it is very easy to do this. If you simplify a problem, you can resolve it much easier. So let’s simplify the problem of losses in stock trading:
If you are a novice trader and you want to start, or if you have traded before but haven’t been successful and you want to have a fresh start, then the first thing you must do is to start with a small account. That’s why I always say, you should start with $500 maximum. That’s the first step to handle your losses in stock trading.
The second step is to limit your losses to 2% maximum in any position you take. Therefore, if you start with a $500 account (either demo or live), 2% will be $10 only. And, a $10 loss with a $500 account is very easy to digest and handle. You must follow this route forever. Even if your $500 account grows into $5 billion, you should do the same with any position that you will take. Even if you trade successfully and you become consistently profitable for 100 years, still you should limit your loss to 2% whenever you want to take a new position.
Never think that you won’t wipe out your account because you have been trading successfully for years. Even after 100 years of successful trading, you can wipe out a $5 billion account with one position. The stock market is always smarter than you. You cannot fight with it, nor can you think that you have known it enough and you know how it moves. No! You can never know the markets. They have always been and will always remain unpredictable. You can only see a trade setup, take a position and set a 2% stop loss. This is all you can do. The rest is up to the market, not you. Only the market knows what direction it should move. You can never know.
That was the stock trading tip of the day. I think I shared the biggest stock trading success secret above. Now, I’d like to share another secret with you:
How to Start Stock Trading
First, make a small amount of money somehow, and learn how to grow it through stock trading, to achieve financial freedom.
It is only in The United States stock market trading that you can grow a small budget into a huge capital. Here, I don’t want to explain why “The United States stock market” and not other markets, because it is irrelevant and has to be discussed in a different article or video. Something that matters here is that you can really turn a small budget like $500 into $1 million, by making 20-30% profit per month on average, in the long-term and within 2-4 years. You can do it, if someone teaches you the correct way of trading, and if you follow the above formula to limit your losses to 2% all the time.
Here on this website, we help our members to do this:
- They join us for free and without having to pay any membership or upgrading fees.
- They earn points through their activities on the site, and receive a share from the money that the website makes, based on the points they earn every month.
- They can use the money they make on our website to trade, if they want. They will learn how we trade, and then they can do the same for themselves if they want. Therefore, they can grow the money they have made here, the way I explained above.
That’s all. It is free because our members don’t pay anything here. Our members’ trading journey can be risk-free because they can trade using the money they make on our website for free. As someone who has been working online since 2001, I dare to say that this is the best and safest way to achieve financial freedom, for free, and risk-free. There’s no other way to do this.
You Can Start Now:
1. Create your account and start earning points through different activities on the site. We will email and teach you how to earn more points.
2. Your points will turn into money at the end of every month, based on the money that the website and community make.
3. You can use this money to trade with us, if you want, and grow it gradually, until it turns into a huge capital that makes you financially free. Please watch this video to learn what I mean:
4. You do all of these here on this site, for free, and risk-free. It is free because you don’t pay any fees. It is risk-free because you trade the money that you make here for free. If you like to learn about our system even more, please read this article.
That’s all. It is as easy as what I described above. However, in order to be part of this system, you MUST be as active as you can on the website to earn points and help other members to do so. Your activities (1) help you earn more points to have a bigger share from the website’s income; (2) help others to earn more points too; (3) help the community to make more money; and (4) help you to become eligible to trade with us every day.
So, please be as active as you can and help the community and other members to become more active every day.
I love you all💝
Please see the attached screenshot: