Disclaimer: This is a legal notice. Please read it carefully in its entirety. It is your responsibility to understand this notice. If you do not understand it, please seek the assistance of a competent advisor.The content in Trend Follower is for educational purpose only. This is not a recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. My opinion is subject to change without notice. Trend Follower will not accept any responsibility or be liable for any investment decisions based on the information discussed here.

Tuesday, November 30, 2010

To trade or not to trade

When in a successive slump. take a vacation. Enjoy life, read books. It takes discipline to profit from the market. If you still trade after a string of loses due to urge, then you will fail. Because you cannot control yourself.


After taking a well deserved vacation and you feel you are ready, trade as little as 1%, until you have the market feel. Your goal should not be to make lots of money but rather to get your confidence back by making correct decisions.


When you are now making the right calls, increase your positions. Remember, we are only right 30% of the time and 70% wrong. So, in order to increase profits, increase position when in winning streak and cut loss immediately when our position is against the trend.


"George Soros has a philosophy that I have also adopted: The way to build long-term returns is through preservation of capital and home runs. You can be far more aggressive when you're making good profits"
Stanley Druckenmiller Market Wizard

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