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Define losses first, before profits. Manage risk ABOVE and BEFORE profits business news And as finite. However well planned a trade is, it may never reach its profit target. Some choose to use a 1% absolute loss guideline the original trading capital, to define the absolute risk per trade. Okay.g. if your trading capital is USD $50’000, 1% is the same as USD $500 maximum loss per trade to incur; versus, accepting a 50% loss about the P/L of that specific good posture.
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Dunkin donuts did an imaginative little survey that was aired on ABC World business news network radio. Very worthwhile that 64% of those surveyed eat the head first. 20% eat the legs, and 16% eat the arms.
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