it is easy to start up any business but within 5 year how many of them close down? 70% and within the next 5 yr how many of those surviving business actually survive.? only 10%.. just like any top athelete and business. this is a truth and a statistic that we cant ignore. But here is the trick the moment you are within that top 10 % you can buy anything include private yatch or jet or any limited edition watch. This is the truth.

Trading is a business that if you have no risk management you gona loss it. it is all about probability mindset and dealing with constant uncertainty. which is no different from traditional business.

i am consistently taking my losses whenever it predefined. following my trading plan.
you can be a long term trader that follow monthly chart or short term trader watching 15 min to 1 hour chart it is the same except the reaction have to be much quicker in 15 min chart.

prior entry you can choose what to buy at what price level and how much to buy. and after entered the trade you only have 2 choice where to take profit and cut your losses it is all about emotion and psychology. if you dont have that sorted out dont take it.


QUOTE FROM SOROS;
IT'S NOT WHETHER YOU ARE RIGHT OR WRONG, BUT HOW MUCH YOU MAKE WHEN YOU'RE RIGHT AND HOW MUCH YOU LOSE WHEN YOU'RE WRONG.

This post has been edited by normanTE: May 7 2019, 04:32 PM

I wont call my self a sifu. in life if you are looking hard enough youwill get the answers. judging from this you are from investing perspective (fundemental is very important)
if you are certain the business that you holding is fundementally strong you should continue to hold.
what is the criteria of good business ? you must understand just like any profession it take many year to specialise in their craft. heard of law of 10,000 hours.

to cut the granny story short. here is the lead
consistent earning and sales growth and low debt with lot of cash in hand which mean they have some forms of moat.
Current ratio excced 1.5 and Debt /equitty ratio of <0.5
sales and general administartion exceed of 30% of gross profit margin is a no no meaning management taking too much in bonus or salary
what is the outstanding shares look like? are they printing more shares or share buy back. (usually not happen with malaysia stock)
(again if you are investing this is also a probablity strategy it doesnt mean it work all the time it also depend on economic environment if us going war with china those probability most like wont work, like winter your crops just dont grow)

investing you need a one great deal of ingredient that is PAtiently waiting for the right price.
like mr buffet once said like a punch card. if you can only punch 20 time in your lifetime you will think very hard each time before you make those punches and infact you dont need 20 punch to get rich. probably 3-4 punch you will be in a comfort zone.

good luck.

Everyone fall but what did you learn from the fall that is more important and look at the ray dalio principle.