Jack on winning trades, 1

Professional traders are far superior to amateur traders…while amateur traders wreck their accounts by taking large losses due to failing to use stop loss orders, professional traders wreck their accounts by taking small profits with limit orders.

Here’s what professional trader Jack Schwager (the guy who wrote the Market Wizards series) says about this starting at page 745 in his tome Schwager on Futures: Technical Analysis. I have paraphrased what he wrote to comply with copyright laws. For the actual wording, see his book.

1. On a major position trade, hold for large, slow profits. Do not take small, quick ones. Never take profits on the Entry Day of a trade (he doesn't say whether or not this applies to Day Trading systems).

...cont'd tomorrow...

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