it is said cut your losers short and ride winners. my question is - how to ride winners?
Ride winners,with good systems and practicing that systems. Riding winners is possible with lots and lots of error and learning from that error.
what do you mean by good systems? can you be specific rather than giving some vague answers?
I have been trying to achieve this by putting a target at a high price which is achievable but not close enough to the entry price…and using trailing stoploss , so that I am out of the trade when it hits the target or the trailing stoploss…it takes tremendous amount of discipline to do this… still learning and fine tuning this approach…try this with a minimum amount…if successful the rewards far outweigh the losses due to the increased number of failed trades (from my experience)
cut your losses means to cut the trades which are in loss early and the trades which are giving you good returns they should not be sold and they should be held for as long as they are giving returns, because if they are giving returns then ok, if not then we are not going to keep that stock adn technically we have to abandon that stock otherwise it will turn into a loss making trade.
Hi,
You have to decide on a system as shown in screenshot. There are many available on google and youtube.
Once a system is finalized, practice real time with small lot.
Once you are confident and after lots of practice
you will be able to ride the trend.
I hope this will help.
Thanks
@RahulN
1.Cut your losses means When you enter in a trade make sure that there is a stop loss in place. If the trade go against your direction, then the SL will protect your capital from huge losses.
2.Ride winners means when a trade going in your direction, then protect the profit with a trailing stoploss. That means DO NOT hurry to book a small profit let it grow as much it can.
Coincidently, this is one of the questions for Nikhil Kamath for tomorrow’s interview stay tuned to know what he has to say about this -https://www.youtube.com/watch?v=0lUPgBS0gDw
3 Likes
The Live is session is over.
You can watch the offline at here https://www.youtube.com/watch?v=KvxRs6Ouyqs
2 Likes