PART 2: HOW TO DEAL WITH AND CONTROL RISK
I have two basic rules about winning in trading as well as in life: (1) If you don’t bet, you can’t win. (2) If you lose all your chips, you can’t bet.
FOR THREE DECADES, enjoying eight bull markets and enduring eight bear markets, I have traded stocks; I have accumulated my personal wealth almost exclusively through stock speculation. After learning the hard lessons of experience, I have been fortunate to relish consistent success, preserving not only my original starting capital but the bulk of the gains. How will you do the same thing? In other words, how will you endure the test of time, not only winning during bull markets but preserving your gains in bear markets? ...