Monday, October 5, 2009

Guideline #3 – Understand That Everything Has a Cycle

The natural way of financial markets is that everything has a cycle and there are ups and downs along the way. Everything has a high and everything has a low and none of those highs or lows lasts forever.


As a trader, you must be willing and able to set limits on the high points you are looking for when taking profits and the low points when you are taking losses. Everyone has both profits and losses. They key is being able to recognize your own limits when it comes to financial risk taking

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