≡ Menu

How To Let The Winners Run In Stock Trading


New traders and even the experienced ones fall for greed or show no patience and book profits early in a profitable trades but let losers ride for more losses in their trades. This leads to more losses and small profits. Ultimately their financial year ends in a loss.

I have told this many times in my blog not to speculate and trade but how many listen? Buying options as a pure speculation is gambling not trading – it will not make money. This falls under greedy trading not well planned trading.

Greed is your bigger enemy than fear in trading

Lets compare trader Greedy Trader A and Conservative Trader B.

Both start with 10 lakhs and decide to meet after 10 years. Greedy Trader A keeps doing speculative trading and makes a loss of 9 lakhs in 10 years. Conservative Trader B makes just 1.5% a month and here is what he ends with – Rs.5,969,322.87 (Rs. Fifty Nine Lakhs 69 Thousand 322.87).

See this:

Rs. 10 lakh compounded For 10 years @ 1.5% return a month


Source: http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Greedy Trader A wanted to make one crore in 10 years with 10 lakhs whereas Conservative Trader B wanted to be in profit even if it means making 1.5% a month. After 10 years who is a better trader Greedy Trader A or Conservative Trader B? The answer is obvious.

Can you see even 1.5% return a month is much better than losing money trading options, stocks or futures? You can do my conservative option course and make much better return than this.

The biggest problem with traders is they do not let the winners run in their trades. Here are some tips on How To Let The Winners Run In Stock Trading.

The Basics Of Trading

Your trading should consist of small losers and big winners. To do that you have to make sure your winners ride. Letting your winners run is very important to long-term success in trading. If you have a 50% win rate then letting the winners run is very important for you. Just taking the profit out because you fear losing out does not make sense in the long run.

Here is what you can do to let the winners ride:

Keep Three Profit Targets – Your Stop Loss Should Be Less Than Your First Profit Target

Divide your money in three equal parts. When your first target is hit, take profits out from 33% of your money in the trade and bring stop loss cost-to-cost. When your second target is hit, take out the next 33% of your money in the trade and bring stop loss to the first target. When your third target is hit, take out the last 34% of your money in the trade and start looking for next trading opportunity.

Moving Averages Are Important

Here is an article on moving averages. However moving averages is a vast topic and cannot be covered here. That said Moving Averages are a great tool to know the support and resistance of a stock of few days (for short positional trades) and even months (for longer positional trades). Use them extensively in your trades.

For example if a stock has broken its 9 EMA (exponential moving average, or EMA, is a stock chart tool investors use to watch trends in the price of a stock) either in the buy or the sell side its a great signal to trade and there is a lot of chance that the trade will be profitable.

Think About the Opposite Trader

If you are short on a stock think when the buyers may try to enter. This will help you to make the right targets 1, 2 and 3. This will allow you to stay patient with your trades. You will get a clear sign that the trend is over, and it is time to take profits.

Do Not Care For Minor Intraday Fluctuations or Mark To Market – MTM

MTM (Mark to market) creates the biggest fear in traders mindset to press the panic button and exit. Do not fear MTM if your stop loss is in place. For positional trades it is highly recommended that you hedge your postilions properly else overnight some news may come which will be bad for your trade and next morning your trade may exceed stop loss make huge losses for you. Do not let that happen and learn to hedge your positional trades. This is very important.

HNIs never take naked positions. They invest millions of dollars and make sure they hedge their positions so that they don’t lose millions in a single day or trade. They never do and almost always make money. Trade like HNIs even if you are a small trader.

If you are a small option trader and losing money trading options you can do my course to make a small 2-3% average per month, monthly income. You will learn some good well researched hedging methods not many retail traders follow.

Please like & share my blog with your friends:

Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.

My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:

What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses

You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.

This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.

This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.

What You Get?

Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.

You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.

Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).

Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.

The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.

Technical knowledge is NOT required. No need to monitor trades every second.

In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.

Since trades are properly hedged there is no stress in trading my strategies.

I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.

11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.

Read the details of the course here.

If you want to enroll for the course you can do so here.

P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.

Privacy Policy | Disclaimer

WhatsApp or Call me: 9051143004

If you have any question you can contact me.

You can read about me here and my trading mistakes here.

TheOptionCourse.com Copyright @ All Rights Reserved
Dilip Shaw, Founder

Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.

How To Do Swing Trading
How To Get Back Your Huge Trading Losses

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 0 comments… add one }

Leave a Comment

Social Share Buttons and Icons powered by Ultimatelysocial