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236: How to Profit and Protect in Any Market Conditions - with Tom Basso

Better System Trader

NOTE

Balance and Discipline: The Keys to Longevity in Trading

Adequate position sizing and risk management are crucial for successful trading, as excessively large positions can lead to significant losses and margin calls. Traders must find a comfortable balance in their portfolios to avoid overexposure to individual assets; an imbalance creates higher risk and drawdowns. Additionally, cultivating awareness and discipline is essential. Traders should recognize their emotional tendencies and avoid impulsive decisions driven by greed or frustration, as these often lead to detrimental outcomes. Maintaining a calm and consistent approach and adhering to a well-defined trading plan is vital for sustained success in trading.

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