I’ve only been trading for 2 years now and I am no expert. This is my first BEAR market. But here is what I am doing to protect myself. It is easier than done of course. If it was easy we would all be rich after 2 trades, right? This is not the case. We all lack self-discipline and are greedy bastards. This is why most of us are still working and losing money in the stock market. I took a decent size loss today because I didn’t think the market can do back flips while drinking a slurpee, but it can!
Here is what you can do to protect yourself.
Manage your positions and manage your risks.
Use a stop loss.
I know right. That’s all you need to do to not lose so much money. You learned how to trade properly by reading those two rules but are you able to apply them to your trading strategy? No. This is why you are not a good trader and you will never be unless you master those two rules. I’m not hear to teach you how to make money. I am hear to teach you to protect your capital from the rest of the world who is trying to take it.