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Re: Run4It post# 71902

Thursday, 04/11/2013 8:28:59 AM

Thursday, April 11, 2013 8:28:59 AM

Post# of 83010
Hang in there Run4It, we all started where you are at. Slow and steady wins the race! The key is to keep compounding your gains and you will be surprised how fast it can grow.

You have to remember that you have to endure some losses along the way and the trick is to minimize those losses with stop losses in place, be it a mental stop losses(which I prefer) or actual stop losses through your broker.

The biggest killer of many portfolios is hanging onto a loser too long. It can be devastating to one's portfolio! I learned the hard way, but since becoming much more disciplined, I have steadily grown my portfolio. Enduring some losses along the way is the nature of the beast and EVERYONE has them, so one has to accept this and manage it properly.

In here we are not afraid to post our losses, along with our gains, as some trades just don't always work out. Each of us has our own threshold for our stop losses and mine is around 10% - 25%, depending on the stocks risk factor. A highly volatile stock may require a higher stop loss to prevent one from getting stopped out too early. VRNG is a good example due to it's wild swings, I have in place a 25% stop loss in place. Whereas, a stock like NQ I have a 15% stop loss, due to how it trades and to ensure I protect my profits along the way.

The point being, that once a stock is substantially up, I want to lock in and protect those gains in case the market would turn against me, so I employ a 10% - 15% stop loss. Despite how much I like a stock, I will flip it when the market/chart dictates. It is hard to entirely remove emotion when trading, but the more and more you get better at it, the more gains you will see add up over time.

Winkles does an excellent job of taking profits and employing tight stop losses in his day trading, which equates into compounding his gains over time which really add up.

Happy Trading my friend - Cheers!

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