Winning Five Words
For 17 years I had to learn hard to learn these words from exchange and floor merchants. Few investors ever learn and even less exercise them.
Since many new members came into the pit, he was always an instructor to watch the old timers slowly tape the newborn's money. Most took only about 6 weeks.
The new members were not stupid and almost always experienced traders, but they seem to leave the door when they enter the commercial floor.
I remember selling soybeans to the guy next to him when I saw a break from the market, and then I took them back from the same person after falling to less than five minutes at ten. This is $ 500 per contract. He was frozen because of inactivity until the money disappeared. Shouting and stirring other traders did not pass through his skull.
Whether in the pit, or in the peace and quiet home where trading takes place, the merchant must always remember the five words.
If he does not curse everyone else, but he does not notice that the guy in the mirror was the cause of the failure.
There is a trade discipline to be a day trademan or a very long-term investor. Old people say they are investors and not traders. As a professional merchant, I tell you that there is no difference except the time limit. Both of them must learn the five words.
It is no different from the fact that the trader / investor takes pork shells or long-term dollars in investment funds. The same words apply.
Unfortunately, brokers do not teach the five words and if they knew they would not pass on their clients. Customers may think they are not as clever as they are. Of course, we know it does not.
When they initiate a new position, these words are immediately put into practice. This is the small expression between the winner and the loser. Without the fact that both long and short term traders learn and practice, the market is broken.
Investors and brokers believe they taught that they should "buy".
Any fool can buy. Without the added five words it will be broken. Anyone who has successfully traded any professional floor merchant will tell you the five keywords that come with every trade that is the secret of financial success before every transaction :.
"How Much I Lose"
The emergence of a minor loss is the key to success. Learn about the limit of loss and apply it.