reading ross's book....
The most important skill for a new trader to understand and adopt is the ability to cap their losses.
One of the first things I told you was that day traders are hunters of volume and managers of risk.
Before getting into the chart patterns and the definitions of exit indicators, we will first say that we stop out of all trades when they hit our max loss. Unfortunately, many traders enter position without a max loss in mind.
If you want to succeed as a trader, it is paramount that you are able to hold yourself to the rules of max loss per trade and max loss per day. Ultimately, this means walking away from the computer when you hit your max loss for the day, even if it is diffcult.
Gamblers think about Profits, Traders think about Risk.
As you continue reading, you will begin to learn about trading chart patterns on the right stocks while applying good risk management principles.
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