What Gives You an Edge as a Trader

[Trading With Larry Benedict]( What Gives You an Edge as a Trader By Larry Benedict, editor, Trading With Larry Benedict Most investors are familiar with common cliches about the markets: “Only invest what you can afford to lose.” “Don’t catch a falling knife.” “Markets can remain irrational longer than you can remain solvent.” And so on. These sayings have stuck around. Because whether you’re trading your own private account or running a billion-dollar hedge fund, one thing doesn’t change: we all have a limited amount of capital. And no one can afford to let money slide off the table. That’s why you need a clearly defined exit strategy when a trade goes against you. Manage Your Losers… and Winners 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 allow themselves to only risk $300 per trade. These are good methods to make sure you’re comfortable with your level of risk on each trade. And by determining your stop losses before entering a trade, you avoid making emotionally charged decisions based on greed or fear. Recommended Link [Elon Musk’s THREE Startups Created an “Army of Millionaires”]( [image]( “Elon Musk’s last three startups were PayPal, SpaceX, and Tesla. Online payments, electric cars, and rockets into space. Just $300 into those startups could’ve turned into $647,000. That’s why the BBC said that Elon helped create “an army of millionaires.” Can Elon create another army of millionaires with his new AI startup? I think so. And remember, AI has already grown 42 times FASTER than the internet. [Here’s a 2-minute video that shows Elon’s AI in action.]( It’s exciting because I trusted my life to the AI as we hurtled at 65 miles per hour.” –Colin Tedards [Click here to see the insane footage.]( -- However, it’s a mistake to think that risk management strategies only apply to managing losses. Granted, capping losses is key to not blowing up your trading account. But here’s the truth… How you manage your winners is just as important. If a trade initially goes your way, you may be tempted to hold on, hoping to see double- or triple-digit gains. But when a winner turns into a loser, it’s easy to fall for the trap of digging in your heels rather than jumping out of the trade. In doing so, you can burn big holes in your account. Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Take the Win At The Opportunistic Trader, we aim to enter trades with strong setups. And we don’t let profitable trades turn into losers. We take the money off the table when we see it. And while some trades result in tidy gains, not all of them are big winners. In November, for example, we closed out an option trade on Tesla (TSLA) that lasted just three trading days for an 82.2% gain. (We covered that gain in more detail [here]( Yet earlier in the year, we closed out another option trade on TSLA for a mere 4.4% gain. After a week in the trade – with a key interest rate decision coming the following week – we locked in this smaller profit. That discipline is important to learn. 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. Of course, big gains are exciting. But small gains – even just 4% – still add up in the long run and contribute to your long-term success as a trader. In the end, how you manage your losses is important. But managing losses is only half of the equation. Equally focusing on how you manage your winning trades will give you that extra edge as a trader. Regards, Larry Benedict Editor, Trading With Larry Benedict IN CASE YOU MISSED IT… [Elon’s Secretive “Master Key” for Tesla (1 Stock to Buy)]( A prototype Tesla just drove 752 miles on a single charge… across the entire state of Michigan. The secret? A new [“Master Key” technology]( that left Tesla CEO Elon Musk stunned. One month later, Musk announced this breakthrough had become: “The dominant [battery] chemistry for Tesla.” Now financial insider Nomi Prins discovered a firm set to become the [#1 supplier of this EV Master Key to America’s auto giants.]( Already, this company is starting to sign contracts with Chevrolet and Toyota. Will Tesla be next? Nomi just sat down to reveal the urgent details. And why early investors stand to see profits of up to 300%. [Click here to watch the full presentation.]( [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). © 2024 Omnia Research, LLC. All rights reserved. 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