key to profit lies in the heap of losses!

many of you
must have been in stock market
since many years.

if i ask you point blank
"what would be the rough total of your winning trades?"
what figure would you give?

and then if i asked you
"what would be the rough total of your losing trades?"
what figure would you give?

chances are
that the sum total of the profitable trades will not be zero.
some decent figure would be there.

and the sum total of the losing trades will be huge
much more than the sum total of the winning trades.

and what would be the net total
(after combining the two figures).

again the chances are
that you would have slipped non stop
in all these years!

well, what's my point?

its plain and simple.

the above facts contain
two part-solution to your problem.

first,
if you were to only reduce and minimize your losing trade frequency and size
especially the size,
your balance sheet will dramatically improve!
who knows, by now, you might have been only marginally in the red, if not in the green,
with a treasure of experience as the base for the final flight!!!

as dr. brett steernbarger says
"If there is a holy grail to successful trading, it probably is risk management."

and now
the part-two of the solution-

why and when did you book the profit
of your few profitable trades?

was it fear of losing the profit
or was it a clear red signal to the rally?

again, chances are
you have a habit of
blinking first!

the cause of fear of losing the profit
like the cause of any other fear
is
darkness
and excitement.

darkness caused by absence of a method
and excitement caused by desperation.

think about it!