👉 Traders can make money even if they’re wrong 2 out of 3 times
5 principles to level up your trading game (Part 2)
Principle 4: Let Your Winners Run
Just as you should avoid having unlimited exposure to risk, make sure you have unlimited exposure to reward
That means letting your winners run
Price can run a lot further than you initially expected
Raise your stoploss as the trade proceeds or set a trailing stoploss
This removes the limit on your potential reward for each trade
Principle 5: Diversify Your Trades
Many assets and indices have a tight correlation or inverse correlation
If you have too many correlated trades, it can make you overly exposed to a macro variable
Fix this by watching a diversified universe of indices, stocks and futures