Trading Rule No -10

[gsnindia]

GET OUT OF 0F YOUR LOSERS

You are not a “loser” because you have a losing trade on. You are, however, a loser if you do not get out of the losing trade once you recognize that the trade is no good. It’s amazing to me how accurate your gut is as a market indicator. If, in your gut, you have the idea that the trade is no good then it’s probably no good. Time to exit.

Every trader has losing trades throughout the session. A typical trade
day for me consists of 33 percent losing trades, 33 percent scratches and 33 percent winners. I exit my losers very quickly. They don’t cost me much. So, although I have either lost or scratched over two-thirds of my trades for the day, I still go home a winner.

[mmraj]

Dear Administrator,
Thank you very much for these rules which are ten commandments for a novice trader. Each and every word of these rules have deeper meaning and will be understood as we go further and further in trading.