Cut Your Losses Short

No matter how smart you are, how high your I.Q. or education, how good your information or how sound your analysis, you're simply just not going to be right all the time.  In fact, you'll probably be right less than half the time! You positively must understand and accept that rule number one for the highly successful individual investor is: always cut short and limit every loss. To do this takes discipline and courage. 

The whole secret to winning big in the stock market is not to be right all the time but to lose the least amount possible when you are wrong.

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