Teeka Tiwari

The Difference Between Winning and Losing Traders

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In my "8 Easy Ways to Boost Your Profits" series, I've been tackling various topics designed to make you a better investor, and No. 4 on my list is stop-losses.

No doubt you know the difference between winning and losing trades -- we've all experienced both and know the pain of the latter all too well.

But for all the strategies and opportunities out there designed to make us the profits of our dreams, most times it's not the strategy that fails us but, rather, the trader behind the trade.

Yes, that might just mean you. So I'm going to show you how to stop losing money and how to become a winning trader.

Before you even place an order, deciding where to buy or to short is always intertwined with where to place one's stop-loss.

No discussion of position entry would be complete without a thorough explanation of stops. And that got me wondering why so few investors use stop-losses.

It might just mean the difference between retiring on time with a healthy nest egg or retiring later and still just "scraping by."

Plan to Win, but Prepare to Take Losses

All professional traders are aware that they must know where they are getting out before they get in. They have to know ahead of time what a wrong trade looks like so they can exit it quickly. This is a rudimentary fundamental that EVERY professional trader knows the answer to.

Can you answer the following questions?

The answers to these questions are at the bedrock of how to buy and how to short stocks.