SEED OF WISDOM

The following is taken from the book "Tools And Tactics For The Master Day Trader" written by Oliver Velez and Greg Capra..

It is ironic that every aspiring market player starts his or her trading career off by trying to do the one thing that can't be done: avoid loss. We, as traders, will never be able to totally eliminate losing trades.. They are with us forever. The only thing within our power is the ability to manage our losses, and if we do that correctly, these losses will lose their ability to hurt us. A careful look will reveal that most talented traders of all lose, and sometimes quite frequently. Yet they still emerge each week as winners because they have stopped wasting energy on avoiding loss and spend the majority of their time managing it. Every trader who fully understands this point soon discovers something miraculous- that while focusing on the proper management of losses, the winning experiences that were once eluding them begin to happen automatically.