Why Good Traders Still Lose Money

You can call the move on the S&P 500 perfectly and still end the day with a loss. Price can run in your favor and come all the way back before you close, turning a winning trade into a losing one. Or

You can call the move on the S&P 500 perfectly and still end the day with a loss. Price can run in your favor and come all the way back before you close, turning a winning trade into a losing one. Or it can go against you, yet you hold on hoping it comes back and a small loss turns into an account wide liquidation. Take profit and stop loss orders define your exit before the trade starts, so your plan runs even when you are not watching the screen. They are the simplest risk management tools you