Trading Goals & Money Management

In this video Stuart McPhee talks about your primary goal as a trader. He is suggesting that making money is not the most important aim. There is actually something more important. And the more important thing than making money is preserving the money that you already have. Protecting the money that you have has to be yours most important aim. Of course, making money is important. He was sometime asked what is his best advice for a trader. He said that is easy: "Do not get out!"

Money that you have you will use them to trade, so if you lose them you have nothing to trade with. You have to be defensive and manage your risk. A trader said once that there are three elements of good trading: cutting losses, cutting losses and cutting losses. If you follow these three rules, you may have a chance. This advice is so simple. The most important thing in making money is not letting your losses get out of hand. Stuart McPhee thinks that in trading it is the best lossers that ultimately can be long term winners. One of his friends, Mark Cook, has one of the best advice for traders, to learn to take losses. As losses get bigger, to cut them gets no easier. So the easier is ever going to be is right from the beginning. So you should take this opportunity.

Stuart McPhee quotes from this video:

  • Dont focus on making money, focus on protecting what you have
  • The most important thing in making money is not letting your losses get out of hand
  • There are three elements of good trading: cutting losses, cutting losses and cutting losses
Submitted by YouTube Trader on Fri, 04/09/2010 - 21:45

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