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Mark Eidem on Trading Habits

Mark Eidem discusses his thoughts on trading habits

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One of the biggest trading habits that’s helped me over the years is focusing on managing risk, controlling losses, because losing trades are inevitable, nobody gets it right all the time. So if I focus on controlling the risk and managing the losses, the profits tend to take care of themselves over time. You will have losing trades. Nobody gets it right all the time, but by focusing on preservation of capital, by focusing on loss control, we’re taking into account that really no one trade can make us, but one trade can break us, maybe not totally financially, but I’ve worked with traders for over 28 years, and I’ve seen people who have been mentally incapacitated just by a big loss, and it’s not necessarily financially devastating, but it’s mentally devastating. So that balancing risk and focusing on managing the losses.

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