For most people, it is not easy taking a loss and there is a strong tendency to “book profits” whenever you get profits. Unfortunately, this approach will never help you earn big money and more often you will see that after running a lot you are still in the same place. Your broker has however been earning slowly but steadily.
Many people assume that those who regularly make money in stock markets must be very clever. Or that you must be blessed with some intelligence to “make it big” in the markets. This is a very wrong assumption as there is no correlation between intelligence and trading.
Whatever system you have, there will winning and loss making trades. Fact is, and this is important, is you can never know in which order this will appear. Also, while you can quantify and limit your loss, you cannot know in advance how much you will win in any trade.