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In order to achieve the biggest bang for you trading buck in the shortest time, you must be time competent. You must be able to gauge future prices based upon present situations. View the now in your life as a running summary of the past and the key to the future. Live in the present, but experience the market so that you are anticipating future market prices. |
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Intuition counts in decision making and risk taking. Traders don't quite know why, but their intuition tells them what to do. We say that they feel it in their "guts." Trading is sometimes a gut decision. Obviously, some traders are more intuitive than others. |
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DAET traders want to balance the mathematical probability of success with their special intuition when they decide whether to take a trading risk. To be more precise, traders should ride with the probabilities and with their intuition. When the probabilities of success are high and their intuition "feels" right, then traders should take the trading risk. |
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The best strategy to curtail risk is not to make any trading mistakes. But the only way to do that is not to tradetrading losses are part of the game. I can tell you that the next best strategy is to cut each trading loss as soon as the market turns adverse to your position. |
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It is OK to have a trading loss. It is not acceptable to allow that small trading loss to turn into a large trading mistake by watching that loss grow and not taking steps to close out that position and mitigate your loss. As they say in banking, there are bad loans and there are stupid loans. A stupid loan is an additional loan to the same person to whom the banker has already made a bad loan. As you already know, the most effective way not to lose money is to stop losses as quickly as practical. Don't allow losses to become blank checks. |
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Fear stops risk taking. Once you have learned the rules of risk taking, you will only take appropriate trading risks. Once you have learned how to analyze and benefit from your trading mistakes, you should have the power to overcome fear. Trading decisions are like all other decisions in life. Following the rules for trading should free you from the fear of failure, which haunts most individuals. Our major anxiety is a fear of |
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