Thought Moment

Mastering this trade at the highest level isn’t about being right every time. It’s about losing less than others when you’re wrong. And holding on tighter than others when you’re right. Forget all those flashy indicators and charts—at the end of the day, it comes down to two things: Lose less when you’re down, and hold longer when you’re up. Losing less is the skill that keeps you alive. Holding longer means going against human nature. First, train your eyes to tell whether the market is chopping sideways or trending. Then, do this: When the market is chopping, take quick profits and cut losses fast. When the market trends, hold steady and let your profits run. Remember: holding without a defense is just gambling. Holding while moving your defense line higher as the market rises—that’s real skill.