A common 1st mistake most traders make

Most traders when they are just getting started are always taught to use a stop to limit their loss in the eventuality that they are wrong in their analysis and foray into the marketplace.  What usually happens is that they get stopped out and the market turns around and goes back in the direction they wanted it to go.  Okay, so that’s the way it goes and you only have to be right 3 out of 10 times to be a great baseball player, right?  So your next trade comes along and guess what?  The same thing happens again.  So on the 3rd or 4th time they decide they are not going to use a stop because they are correct in their analysis but keep getting stopped out.  And then it happens.  The market goes through their stop point and continues to move against them and the losses continue to mount.  Finally out of desperation they exit their position with a big loss, and you guessed it, the market turns around and goes their way.  It happens to everyone and only the persistent will want to continue past the beatings.  Unfortunately, some of lifes greatest lessons are the most painful.  That’s it for today and I am Knowah and I’m going back to the ark!

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