To master the market, you must first become proficient at cutting losses and securing profits
How to make a living from the market
Technical analysis signals and market judgments
are not that important
The most important thing is
cutting losses and taking profits—just that
Another common misconception is that you don’t have to
do cut losses, meaning you shouldn’t focus obsessively on them
I think this has probably become a literal interpretation of what trend logic says
like “if you cut losses you can increase your gains”
Many people who know nothing look down on those who lose
saying they don’t cut losses, or they don’t follow the trend
but those kinds of people are mostly not trading at all
Pursuing trend-following isn't inherently superior
it's just that more people who can judge the market can increase profits
If a strategy has a higher potential for loss than profit
then the number of times you cut losses is low, and if you don’t limit it
profit will only trend downward from there
Risk control changes depending on the strategy
Whether you understand that or not changes
whether you can hide your market judgment or not
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