Let Your Profits Run / Do Not Let Big Winners Get Away In Stock Market
At first these two objectives seem to be at cross purposes in stock market
. If you are holding a winning trade in stock market and you take a profit you are no longer letting your profits run in stock market. Conversely, if you are holding a big winning trade and you let it ride, then you run the risk of letting a big winner get away. So what is the right thing to do in stock market? The answer to this paradox lies in your answer to the question "what criteria will you use to exit a trade with a profit?" in stock market. Whatever technique you decide upon for exiting a trade in stock market with a profit you must apply trade after trade after trade. Constantly refer back to these four cornerstones when developing your trading plan in stock market.
Doing so will help you to develop a solid approach to trading, one which has a realistic probability of making money in the long run in stock market. It will also help your confidence to know that you are building a framework which is based upon the most important concepts in successful trading in stock market.