Read old posting on? The Cruel Math of Big Losses - II
The greatest lesson that I have learnt from my losses is not either the need to further improve skills on technical or fundamental analysis but to keep LOSSES small and to cap the destructive power of the market against invested capital deployed in the market.
I have learnt that once your capital is invested in the market you have absolutely lost your control over it. The market will decide your fate. The only trusted and proven thing to do is to limit your losses to the lowest % of your invested capital as it is so much easier to recover with smaller losses as clearly shown in the older post.
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