Cut your losses quickly and let your profits run

This simple concept is one of the hardest concepts to be implemented and this led to the death for most traders. Most traders violate a predetermined plan and take advantage of them before reaching their profit target because they feel uncomfortable sitting in a favorable position. This same type of people will easily sit in the position of the loss, allowing the market to move against them for hundreds of points in the hope that the market will return. In addition, traders who have been exposed to the stop their recurring times only to see the market back at their will, once they come out, they quickly move from stop trade order and with one thing belief that this will always be there. Stop orders are held for the subject, and to stop you from losses exceeding the amount specified in advance! The wrong belief is that each transaction must be profitable. If you have a profit 3 out of 6 transactions then you have to do well. How is it possible you can make money with only half of your trades to be a winner? Quite simply, you allow your profits at the win to turn around and make sure that your loss experience is minimal. Another good strategy is to move the stop loss (points where the transaction would be sold if it went the wrong way) behind the trade to a level where a recall can be accommodated but a reversal will be locked at least get a little advantage.