Optimizing LOSS LIMITS for maximizing PROFITS

HOME                                                                                   FINANCIAL PLANNING

Image

When I say I love losses and waiting for her to come  , it is with a purpose  . I can hold her for a  greater profit . But how much of loss I can take ?  Unlimited ?   No . Anything in excess is poisonous including delicious food  and I would eat  what I can chew .    So there will be a limit for losses , what I can take and hold . As a  greedy person , I  also love to take risks  and losses are welcome .  How much  loss then ? .  So it is a trade off between    love for risk and  capacity to hold it .  It is   a trade off between my greed   to make it maximum and fear   of losing everything I posses .    In the process , I would end up  with a wish to hold  maximum of  loss   in  a trade to the extent

1.  My  loss will not spoil  my good night’s sleep  .

2.  My loss will not make  me lose my  living standards and living style

3. My loss will not make me lose my appetite for game and  will not cripple my  capacity to play  future games

4.  I believe that   my loss is  a gateway for   greater gains .

In short , I will have  a limit for Losses  and now I have to fix  LOSS LIMITS  for the  game to play  . Loss limits are like defence  goal posts  with fear as Goal keeper .  I will plan my losses  in advance , before starting the game , so that it will not come as a  shock in future . In fact i would like to fix my losses  in advance .   But before fixing my losses and before  entering the game , I will   do FIELD FIXING  first which would give me peace of mind . As a corollary of  field fixing ,   Stop Losses would be automatically fixed .

What is FIELD FIXING then ?

DISCLAIMER :

No content on this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.

About bellurnm

Worked for more than 3 decades for an Indian International Bank in various gamuts of banking especially in Credit & Treasury . Interested in Trading and Investment and Psychology of Markets . Presently living in Mysore , India
This entry was posted in stock Markets, Uncategorized and tagged , , , , , , , , , , , , , , , , . Bookmark the permalink.

What do you think ? Your feedback will be appreciated