5 Rules For Selling Losers Faster!

"my accuracy this year this year it's a little lower it's only about 65% and yet I've got $1.5 million of profit and the reason is because my average winners are larger than my average losers I have a positive profit to loss ratio"

"we end up doing is when we take a trade if it's a winner we're so afraid of losing that winner it's still a fear of loss we're afraid of that winner going away and turning into a loss that as soon as we're up even just a teeny bit we bail out get out immediately to take the profit"

"but when we're in a losing trade what do we do we hold and we hope that it'll turn around because we don't want to take a loss"

"I got out but what maybe a beginner Trader would do is say oh shoot it didn't go to 10 I just had a profit now it's coming back down I'm just going to hold this it's probably going to come back up and next thing you know now it's down at 9 now it's at 850 now it's at 8 and they're in the red"

"number one is um of course daily Max loss and this is especially important as a beginner Trader I would say these rules are guard rails they're like training wheels that are important when you're getting started"

"green to Red if I go green to Red that's a major problem and then uh number three if I um give back half my day after hitting goal so I learned these three triggers right here can cause me to get really emotional"

"if I trade A+ quality setups my accuracy on a A+ quality setups is typically going to be between 75 and 85% this is my accuracy and my profit loss ratio is typically going to be 2 to one where my average winners are twice my average losers"

"a stock that meets all five criteria of stock selection is going to be an a quality stock so the five C criteria of stock selection include what we've got to have the right price it's got to be up the right amount on the day it's got to have the right relative volume it's got to have news and it's got to have the right float"

"I decided to do was change that hotkey from sell full to cell half so I changed it to a cell half hotkey and just by doing that changing it to cell half instead of bailing on the full position I would just take a little profit off the table"

"setting stops is also something I did now that's not something that you can do pre-market as you know um because there's no stop orders pre-market but setting stops as an automatic order as soon as I got into a trade just pressing a hot key to set a stop which I said is contrl S immediately puts a stop on the trade"

"on my trades that are working the best where I get in a trade and I'm immediately up more than my 12 15 cent average winner as soon as I'm up more than 15 cents if I get into a trade and I'm instantly up 30 cents a share there's two ways to approach it on the one hand I could go ahead and take half off the table on the other hand I could double my position and move my stop to my average price"

"reducing your share size because just implementing these rules that they're important but to be honest if you don't also reduce your share size you're probably going to have a hard time following these rules"

"now your logical brain is gone and that fight or flight part of your brain has taken over and it's a survival mechanism that we have that figh or flight response but in the context of trying to trade in the financial markets... the figh or flight response will not help you"

"my standard of what I needed to make in order for me to feel like I was successful was $52,000 a year or $1,000 a week that was it $52,000 a year $1,000 a week so you know look $50,000 a year in in the grand scheme of things is setting the bar really low that's $200 a day"

"this year year to date I'm sitting at just under 1.5 1.5 million gross profit my accuracy is about 64% right now so it's a little lower this year which I don't love but my profit loss ratio is decent $769 average winners $543 average losers"

"on my losing days my accurac is only 46% only 46% on on losing days so I am clearly on losing days not trading well"