@CTUCyberGroup Lesson: CONTROL YOUR LOSES! (FREE Trading Journal Available)
Incredible day today in the CyberGroup Room. This morning it was like no matter what decision we made it was going to work out. $NEWL started us off going on a huge run, pulling back a little and than going right back up. $FEYE was an even bigger winner. Although more of a level 4 stocks, it made a nice run out of the gate, pulled back, and then ran over $2.50. $DKS was another short call out this morning that ended up working even better than we expected and the list goes on and on.
I received an email from a student today, which I get about 400 per day, and most of the time they are trading journals. Usually it takes some time to analyze them to get back to my student with a response but this one actually took less than 10 seconds. Going down the P & L column this is the gist of what I saw. (+.03) (+.04) (-.45) (+.17) (+.23) (+.12) (-.59) I’m sure at this point you get it. They are not controlling their losses. There winning percentage is not bad, it’s actually quite good but every time they lose they are giving back all their profits and then some. Journaling really helps you see these things in black and white. If this trader were to control their losses and never lose more than they want to win that day, they’d actually be a successful trader. The home runs will come, but in order to make sure they stick, you need to cut your losses.