How To Never Lose Money On A Trade

[fordewind]

About only pattern that works fairly well at highs/lows is Head & Shoulders, breakout of right shoulder's highest low. But if it doesn't drop fairly quick, get out at breakeven. Some only become a retracement only to go a little higher than drop, by then MACD is usually showing divergence.

nail in the coffin.thread is closed.

 

[Harry Butcher]

It is almost impossible not to lose on all your trades. The best you can do is use good money management to limit your losses. Especially using stop losses to state the maximum losses you can afford on every trade.

 

[JesseJamesFinn1]

Easy... The answer to the question in the title is simple. Don't trade.

I thought the same thing, don't trade!

 

[atrp2biz]

Just double down by averaging down/up until you're eventually in the green. I've only ever lost once doing this.

 

[fordewind]

Just double down by averaging down/up until you're eventually in the green. I've only ever lost once doing this.

And lost it all?

 

[eganon69]

Just double down by averaging down/up until you're eventually in the green. I've only ever lost once doing this.

This is called a Martingale approach to betting/trading and has been proven to be a losing method.

 

[atrp2biz]

My bad. Tongue in cheek doesn't work well on the internet.

 

[Overnight]

"...The market wasn't design so the average Joe can make money.. You will need more than cut your losses short and let your winners ride.. This market is too complex for that.. You will need a well planned strategy to make money every year... The problem with your theory is people that have no clue about the market will win big if they let their winners ride , but they will give all their profits back when the market consolidates.. Trust me, this market is well prepared for your theory.. The market will eat people alive if you don't understand what's really going on.

(The underline and bolding was added to the quote...)

I didn't think "the market" was designed for any particular type of person to make money, be they extraordinaire, average, or poser. The markets are their own beast. I do not believe "the markets" are out to get anyone in particular. They are what they are. We adapt to what they are and we swim, or we fail to recognize them, and we sink.

 

[Buy1Sell2]

But, do you have a system that cuts those losses when you're wrong, that saves you money. Cause, the truth of the matter is that successful traders never lose more than they have to.

??????? That was a long way to get to a long held maxim.

 

[SunTrader]

If I had more time, I would have written a shorter letter.
- Blaise Pascal