c17 JWBT016-Busby September 30, 2008 14:43 Printer: TBD
Risk Management 169Be a hands-on trader. Watch every trade, and if you have made a mis-
take and the trade goes against you—get out. Do not hold losers and allow
them to deplete your cash. When you have a winner, let a portion of the
position run while you follow the move with a trailing stop. Lock in profits
and enjoy taking as much money from the market as the trade will allow.
All traders go through tough times. Sometimes a strategy is not work-
ing. The market conditions are wrong or unpredictable. Or perhaps your
execution is not right. At any rate, there are times when you are simply not
playing a good game. After several losses in a row, stop trading and move
to the sidelines. Analyze and observe. Only after a break should you try
again. Then begin slowly and regain confidence and confirm skills.