Managing Losses Is Only Half the Battle

[Trading With Larry Benedict]( Managing Losses Is Only Half the Battle By Larry Benedict, editor, Trading With Larry Benedict Most investors are familiar with the common cliches about the markets. Like only investing what you can afford to lose… or having a clearly defined exit strategy when a trade goes against you. These adages have stuck around – because whether you’re trading on your own or running a billion-dollar hedge fund, one thing doesn’t change. We all have a limited amount of capital. So no one can afford to let money slide off the table. For example, some traders will close a position if a trade goes a fixed percentage against them – like 5%. Others use a dollar-amount stop loss. For instance, someone with a $10,000 trading account might only allow themselves to risk $300 per trade. However, it’s a mistake to think that risk management strategies only apply to managing losses. Sure, capping losses is key to not blowing up your trading account. But how you manage your winners is just as important. Recommended Link [How to Collect “Amazon Secret Royalty Payouts” by June 13]( [image]( Did you know over 1.6 million Amazon packages are delivered to front porches across the country every single day… (Just take a look in your own neighborhood!) Americans can’t get enough. Yet, by exploiting a strange IRS loophole… A small group of regular Americans have discovered how to collect payouts from a little-known investment that we call “Amazon’s secret royalty program.” The way it works is simple: It’s a way for you to buy and own a critical asset Amazon needs to stay in business… Which means Amazon MUST PAY for the rights to use it! And these payouts can grow up to $28,544 (or more!) every single year... Click below to learn more… The next payout is scheduled for June 13th. [Watch Video Now.]( -- The Market Has Changed Some investors are still grappling with just how much the market has changed. Through 2021, investors could buy the dip and then hang on for the ride. It often worked. We saw countless stocks make double- or even triple-digit returns. But when markets are volatile, we have to take money off the table when we see it. That same “buy the dip and hold” strategy will bury those same investors now. Letting their trades run won’t pay off in the same way. After entering a trade that initially goes right, they hold on, expecting to see huge gains similar to previous years. And when a winner turns into a loser, they dig their heels in rather than jump out of the trade. And in doing so, they can burn big holes into their account. Instead, at The Opportunistic Trader, we aim to do the exact opposite. We enter trades with strong setups and don’t let profitable trades turn into losers. We take the money off the table when we see it. And while some trades have seen tidy gains, not all of them have been big winners. Continuously Bank Your Winners For example, in late May we closed out an options trade on Wynn Resorts (WYNN) that lasted just five days for a 41% gain. (You can read more about that in yesterday’s essay [here]( Earlier that same month, we closed out an options trade on the SPDR Gold Trust (GLD) for a 33.4% gain in about eight days. And at the end of April, we closed out a Tesla (TSLA) trade for a mere 4.39% win in four days. Those might not sound like jaw-dropping wins. But the key to successful trading is to continuously bank your winners, no matter how small or large. Simply hoping for home run trades isn’t enough. Traders can only make what the market allows them to. And small gains – even single-digit ones – all add up and contribute to your long-term success as a trader. How you manage your losses is vital. But managing losses is only half of the equation. Managing your winning trades as well will give you that extra edge as a trader. Regards, Larry Benedict Editor, Trading With Larry Benedict Mailbag What strategies do you use for managing your winners and losers? Send us your thoughts to feedback@opportunistictrader.com. IN CASE YOU MISSED IT… [“Stock Shock” Hits America October 1st (Prepare Now) – Multimillionaire Trader]( Over $13 trillion in household wealth has been wiped out… And stocks STILL cost DOUBLE what they did before the 2008 crash… But is the best solution really to just sit in cash? No. Over the last 4-decades, our firm has publicly predicted the fall of the Soviet Union… the Dot-Com collapse… the 2008 crash… Trump’s presidency… and the 2020, 2022, and 2023 crashes. Now, millionaire Jeff Clark is issuing a [new WARNING]( unlike anything we’ve seen in years. A [“Stock Shock” is coming to America]( that could be the worst OR BEST thing for your investments depending how you act BEFORE October 1st. Jeff’s also revealing the [ONE secret to getting ahead of this new shock]( and profiting in any market condition – closing returns of huge gains in only 8 days. [Click Here to See Jeff’s New WARNING.]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](