Limiting Trading Losses

By Jason Van Bergen
It is simply not possible for any trader–whether amateur, professional or anywhere in between–to avoid every single loss. The disciplined trader is fully cognizant of the inevitability of losing hard-earned profits and, as such, is able to accept losses without emotional upheaval. At the same time, however, there are systematic methods by which you can ensure that losses are kept to a minimum.
The System
Every trader should employ a loss-limit system whereby he or she limits losses to a fixed percentage of assets, or a fixed percentage loss … Continue Reading