#1 - Money/Risk management. You need a stop loss and a price target. Before you take a position on the market, know exactly how much loss you're wiling to take.

#1 - Money/Risk management. You need a stop loss and a price target. Before you take a position on the market, know exactly how much loss you're wiling to take. Know exactly how much gain you're targeting. When you reach any of these 2 numbers, exit. Always stick to this strategy and you'll end up positive. Yes, you won't win the lottery, but this is how the pros do it. For a given position, on average people go for +5% gain then -3% loss. On a 50/50 scenario you're always positive over the long term. #2 - Gain maximizer. Sell only half of your position on a winning trade when you reach your target point. You're covered in case it goes down (still need a stop loss). Then if it goes up it's all good :) Make sure to setup a second price target to exit. Always stick to rule #1. If you hang on to your stocks with no target price - like your average Joe - you'll go negative. Welcome to the market.