This is common sense, it's called having a Stop Lose. It doesn't mean you will make money either!
Why is this even posted?
Dear Fellow Traders,
Everyone related to Stock Market is always focused on the goal of how much they can make buying/selling a stock, they forget to concern themselves with how much they risk loosing. Is it true that “The secret to great wealth in the stock market, is not big gains; its small losses”
Is this a strategy of keeping losses small? If we will win only 1 out of 3 times with our losers loosing 5% and our winners gaining 25% we can make extremely large profits. That’s do the math assuming that there is only 1 out of 3 winners. So if we make 9 trades of USD10,000 each in one month it means we will loose money on 6 and make money only 3. the 6 losers will cost us USD3000 (6*5% loss on each of USD 10,000 Trades) and the 3 winners will net us USD7500 (3*25% gain on each of USD 10,000 Trades) for a profit of USD 4,500
Regards
Mark
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This is common sense, it's called having a Stop Lose. It doesn't mean you will make money either!
Why is this even posted?
Last edited by ol' boy; 14-10-09 at 07:58 AM.
Thread closed and spammer banned
Reality is an invention of my imagination.
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