I share this with you because we want to challenge fellow readers/investors/traders to assess their process in its entirety and be sure to acknowledge where improvements or new goals must be made. This should be considered routine maintenance by any investor but all too many fail to be truly honest with themselves. One area where we see many struggle is how to handle losing positions. This is a primary determinant (if not THE PRIMARY factor) in one's long term success. Loss management is so important for a variety of reasons but math and compounding sit at the top of that list. Take a look at the chart below:
Percent Rise To Breakeven
Take a moment as you prepare for a new trading year to make sure your risk management process is air-tight and fits your personality.