Minimising Your Losses When Investing or trading is extremely important.
When most people begin their careers they don’t think about minimising their losses. The first and often only thing on their mind is how do I make money. To analyse a potential Speculative Investment they research stocks, check mentions on social media, calculate an entry, forecast potential exit strategies and then lastly click the buy button. Then they watch the stock like a hawk waiting for their profit target to be reached to cash in on all that hard work. Even though this may seem like a very logical process it will, in most cases, inevitably blow up their accounts.
Now what I am about to say is going to sound dumb but bear with me. The most important rule in being successful in a speculative investment actually has nothing to do with making money! The most important rule is minimising your losses. For at least the first 3 years the market is going to serve you with more hard lessons than you have experienced in your entire life. You are entering into a minefield that can’t be learned in books or YouTube motivational videos. By minimising your losses, you will be able to build yourself from the ground up and increase your knowledge and experience. The longer you can survive the blow after blow that you will be dealt with then the greater the chance of long term success that you will have.
