Most Traders are backwards. Are you?
Most traders take profits on winners quickly and let their losers ride. This is the wrong approach. Think of it like you’re a baseball coach. You have 9 players. Say 3 are hitting well, 3 are doing OK and 3 are performing poorly.
What would a good coach do?
He’d bench the 3 poor performers and get 3 new guys in. This is the right thing to do and yet most traders do the opposite. When trades are going well they exit and when they are going poorly they hold on!
Why do they do this?
They do it because they want every single trade to be a winner. If they exit winners and hold losers until they are winners, they believe they can achieve this. For a while, this strategy may work. Unfortunately, eventually they will have a loser so big they can’t recover.
One key to maximizing profits is to let your winners ride and make you more and more money. The other key is risk management. Get out with a small loss and live to fight another day.
This is so difficult for amateur traders and yet so easy for TickerTank members for two simple reasons:
Emotion management: TickerTank members learn that there is no pride in trading, only profits and losses. You want bigger profits and smaller losses.
Trading Community: When trading alone, you debate yourself, constantly unsure of what move to make, if any. TickerTank members have put those days behind them. They seek and receive help from not only our expert traders, but also from other members. Never go it alone!
In addition to these methods, one key to maximizing profits is understanding the various methods for making money in the market. Our aggressive options systems look to make 50-500% on trades while our futures trades use leverage to Day Trade quick profits.