Trader, Are You Making This Mistake?

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i resolve never to risk any more than uh

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to start with about half a percent on

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any one trade especially the short-term

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trades and in the short-term trades I'd

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be happy risking less than that maybe a

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third of a percent in any one trade and

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that means that the distance that the

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the amount of money between the entry

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point and my stop-loss should be a third

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of my risk portfolio uh uh that I'm

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exposing to that asset class uh and uh

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then if the darn thing goes my way then

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I shall add to that position and I like

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in on a 4hour chart of the forex market

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I like to be two or three times bigger

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when I'm right than I am when I'm wrong

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and as I said earlier if there's one way

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to really cause money to come running at

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you it's being bigger when you're right

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than you are when you're wrong it's

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difficult because all of a sudden you

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can go to bed and you're up 50 ticks uh

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and uh you get up the next morning and

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you're all gung-ho about adding and of

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course the 50 ticks is gone uh uh and

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then you say to yourself well if I'd

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taken the 50 ticks I would have had 50

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ticks so it's very easy to rationalize

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doing the wrong thing but adding to

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winners pushing your winners is really

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good if you're not big at best you're

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going to break even i speak to a lot of

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traders and I speak to traders who've

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been at the game for a while and they'll

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come and they'll say "David I'm not

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losing any money but I'm not making any

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money how can I make some money?" And

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without a doubt the reason that they're

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not making money is that they're the

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same size when they're right as when

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they're