Risk Management

Under the section My Most Important Market Belief, Larry writes.

“I have developed a powerful and profitable belief system: I believe the current trade I am in will be a loser . a big loser at that. This continues to be my most important market mantra. Winners we can handle, it’s the losses that kill you.”

This reminds him to stick with his stop-losses, not be complacent, and keep money management at the forefront of his mind.

He says.

“Loss control is still what separates winners from losers. In trading it takes only one trade that gets away from you to wipe out your bank account. Just one.”